Azerbaijan's banking system, reeling from the February devaluation of the national currency (minus 34.5%), today received another shock therapy (minus 48%).
Bankers were informed about the unpopular measure of the Central Bank, but that it is not easier. The entire loan portfolio (banks and non-bank credit organizations as of November 1, issued 18 billion 566.4 million AZN) is tied to the US dollar and the euro, so that the bad loans hung more heavily on the credit institutions.
Furthermore, private production will stop, including the spheres of agricultural industry, construction, trade and services that will become more passive because of the falling consumer demand. The SSC will not be able to report on the acceptable level of inflation. --17D-
Economics
-
Azerbaijan's Cabinet of Ministers has approved amendments to the list of strategically important goods in the country's consumer market, as outlined in Decision No. 136 dated April 27, 2023. The update aligns with the implementation of the Law on State Reserves and a corresponding presidential decree, the government announced on Thursday.
-
Representatives of Azerbaijani and Latvian business circles convened in Baku for the "Azerbaijan-Latvia Information and Networking Meeting," marking a significant step in bolstering economic cooperation between the two countries. Latvian Ambassador to Azerbaijan, Edgars Skuja, underscored the event’s mission to connect entrepreneurs from both nations, aiming to enhance collaboration across multiple sectors.
-
The President of Azerbaijan approved the amendments on November 7, which were made to the “Law of the Republic of Azerbaijan on Credit Bureaus” by the Milli Majlis. The text of the amended law was published on November 28.
-
The European Bank for Reconstruction and Development (EBRD) has released its Transition Report 2024-25 for Azerbaijan, urging the country to take bold steps to improve economic governance and foster private sector development. The report outlines key priorities for Azerbaijan’s economic trajectory and highlights challenges stemming from its reliance on volatile energy markets.
Leave a review