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-
Economics
-
Azerbaijani President Ilham Aliyev signed a decree on Monday aimed at improving social welfare, increasing the country’s minimum monthly wage to 400 manats ($235) starting January 1, 2025.
-
Turkish companies YDA and ASFAT plan to build a shipyard near Kazakhstan's port of Kuryk to address the country's domestic fleet shortage, Kazakhstan's Minister of Transport Marat Karabaev announced on Monday during a parliamentary session. The project underscores Kazakhstan's ambitions to strengthen its maritime capabilities and logistics infrastructure.
-
Kazakhstan's Minister of Transport, Marat Karabayev, unveiled the country’s bold roadmap for transforming itself into a premier transport and logistics hub in Eurasia. Speaking in parliament on Monday, Karabayev detailed strategies to capture a share of the massive $1 trillion annual freight flows between the East-West and North-South corridors.
-
The ASCO-owned ferry "Shahdag," freshly refurbished, has resumed operations on the Azerbaijan-Kazakhstan route, aiming to alleviate severe truck congestion at ports on both sides of the Caspian Sea.
Leave a review