Fitch Ratings has affirmed OJSC Azerbaijan Mortgage Fund's (AMF) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB+' with Negative Outlooks.
AMF's ratings are equalized with Azerbaijan's sovereign ratings (BB+/Negative), reflecting the entity's strong legal linkage with the republic, strategically important role to the state's housing finance policy and the state's tight state control over AMF's activities. The ratings are also supported by a buy-back guarantee for AMF's bonds provided by the central bank. Fitch views AMF as a credit-linked entity under its "Rating of Public-Sector Entities Criteria".
Fitch views AMF's role as strategically important to the state's housing policy as provision of affordable housing is a high priority for Azerbaijan. Demand for housing is fuelled by a growing population and the continued urbanization of the country amid aging housing stock. The state makes steady contributions to AMF to support housing affordability in the republic.
Fitch projects AMF's mortgage portfolio could grow 30%-40% in 2017 after a slight decline in 2016 (unaudited 2016: AZN539m), supported by an AZN50m equity injection and upcoming AZN200m bond issue. ------71D
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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