The recent reduction of Kazakh tenge rate by 19% will significantly affect solvency of the energy and transport companies of Kazakhstan rated by the agency, reported Fitch Ratings international agency.
According to the statement released by Fitch, this is connected with difference in currency between the promissory notes and profit and the fact that majority of the Kazakh companies do not use hedging to reduce their currency risks.
“According to our estimates, over 75% of debt of the energy and transport companies of Kazakhstan rated by the agency is in foreign currency, but majority of their money flows is generated at the local market in local currency. Liability to currency risks differs among the companies depending on their borrowing policy,” the press release reads.
The negative influence of the tenge devaluation could be reinforced by potential rise in interest rates at the local debt market and inflation pressure. The regulated tariffs could limit the companies’ ability to compensate higher costs, reported http://newskaz.ru.--0--
Economics
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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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