On February 23, the international rating agency Moody`s warned that the assets of Azerbaijani banks are at risk.
As reported by Bloomberg, this assessment came after Azerbaijan, a major oil producer, on February 21 dramatically lowered the rate of the national currency against the dollar and the euro.
In this regard, on Monday Moody`s exposed "negative outlook" for Azerbaijani banks such as JSC International Bank and JSC VTB.
The move had a negative impact on asset quality due to the borrowers’ pressure on banks and the borrowers' ability to repay loans.
At the same time, liabilities of banks in foreign currency were denominated.
Currency devaluation will encourage depositors to transfer manat deposits into foreign currency, analysts from Moody`s believe. -02D-
Economics
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Hundreds of trucks are stuck in the Kazakh port of Kuryk, facing delays for several days while waiting for ferry transport to Azerbaijan, the Azakhstan portal reports lada.kz. The backlog is due to a combination of reduced ferry availability, adverse weather conditions, and an influx of cargo rerouted because of expanded sanctions on Russia.
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Members of the Association of Independent Industrialists and Businessmen (MÜSIAD) have invested 61.3 million manats in Azerbaijan's economy over the past three years, Rashad Jabirli, chairman of "MÜSIAD Azerbaijan," revealed during a media briefing.
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While the global economy faces persistent challenges, trade between China and Azerbaijan has defied downward trends, demonstrating significant growth. According to official statistics from Azerbaijan, bilateral trade in 2023 reached 3.1 billion US dollars. In just the first ten months of 2024, trade volume increased by 17.1% year-on-year, reaching 3.02 billion US dollars, putting the annual trade figure on track to hit a record high.
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The German-Azerbaijani Chamber of Commerce (AHK Azerbaijan) hosted its biannual Members' General Meeting in Baku on December 18, 2024, gathering over 80 business representatives to reflect on the chamber’s milestones and chart a path forward.
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