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
-
The Turkish company Aksa Doğalgaz, part of Kazancı Holding, has announced the completion of the contractual process to purchase the gas distribution companies Bursagaz and Kayserigaz. These companies have been operating under SOCAR Türkiye Energy AS (STEAS) since 2019, according to Aksa Doğalgaz.
-
Azerbaijan's Cabinet of Ministers has introduced new regulations establishing the minimum royalties for authors of state-commissioned films, aiming to promote creative works reflecting the country's national identity and cultural values.
-
Tea imports to Azerbaijan have increased. According to the State Customs Committee, from January to November 2024, tea imports grew by 3.3% year-on-year to 12,893 tons in volume and by 4.5% in value, amounting to $67.715 million.
-
Azerbaijan’s State Railways (ADY) reported a 28% year-on-year increase in transit cargo volumes through the North-South International Transport Corridor (NSTC) in 2024, reaching 814,000 tonnes. This growth underscores the country’s concerted efforts to unlock the strategic potential of the corridor, which connects Northern Europe and Russia to the Indian Ocean.
Leave a review