The international agency Fitch Ratings affirmed the long-term issuer default rating of the largest local banks (International Bank of Azerbaijan at the level of BB and Capital Bank and Pasha Bank at B +).
As stated in the press release, the forecast for the activities of all three structures is "stable", while the stability rating of Capital Bank has been upgraded to «b».
Experts do not hide the fact that the stability and activity of the mentioned positive trend of banks matched with government financial resources and those close to the government, based on a strong public participation and a significant amount of the State Oil Fund of Azerbaijan. Otherwise, the dependence of the local economy of global oil prices would make the chances of these organizations vulnerable and uncertain.
"Despite the decline in oil revenues, the government policy is expected to be relatively moderate, so that economic growth will continue. However, if oil prices for a long time are at a low level, it can lead to significant budget cuts that have been the main driver of growth for the non-oil sector, as well as reduction in support of bank lending and asset quality," the press release said. --17D-
Economics
-
Azerbaijan's foreign direct investment (FDI) portfolio for the first half of the year continued to be dominated by the oil and gas sector, which attracted 80.4% of the total FDI inflow of $3 billion, according to the Central Bank of Azerbaijan. This reflects a persistent trend of reliance on energy resources, as the country plays a critical role as a key energy producer in the region.
-
A Baku seminar titled "Green Building Initiative in Azerbaijan," held on September 12, spotlighted the country’s increasing focus on sustainable construction. Organized by the State Committee for Urban Planning and Architecture, in collaboration with the International Finance Corporation (IFC), the event brought together key stakeholders from both the public and private sectors, reflecting a growing national commitment to environmentally conscious building practices.
-
The Central Bank of Azerbaijan (CBA) today held a briefing on the financial results for the first half of 2024, shedding light on the country’s economic health and key indicators influencing its external balance. Samir Nasirov, Director of the CBA Statistics Department, outlined the current account surplus, foreign investments, and other critical metrics during the event.
-
On September 11, 2024, Azerbaijan's Economic Council, chaired by Prime Minister Ali Asadov, convened to review the draft state and consolidated budgets for 2025-2028. The meeting, dedicated to key financial and economic issues, addressed global economic trends, macroeconomic forecasts for 2024-2028, and the country’s budget policy for the coming years.
Leave a review