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Moody’s Investors Service has maintained its negative outlook on Azerbaijan`s banking system for a year and a half
Moody's Investors Service has maintained its negative outlook on Azerbaijan's banking system for the next 12-18 months. "A challenging operating environment combined with a significant devaluation of the local currency over the past year, will weigh further on Azerbaijani banks' asset quality, profitability, capitalization and funding. "We expect an increase in system-wide problem loans in Azerbaijan to around 20% of gross loans by the end of 2016, from 16% in December 2015," explains Ms. Malyukova. "This comes as the weaker manat pushes up the debt servicing burden for borrowers amid deteriorating market conditions." Funding conditions have also weakened, mostly as a result of a loss of confidence in the manat. Foreign-currency denominated deposits increased to 82% of total deposits as of the end of 2015, up from 50% a year earlier. This widens the mismatch between foreign-currency assets and liabilities and increases banks' vulnerability to further exchange rate volatility. -02D-
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- Politics
- 1 June 2016 16:21
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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