The outlook for Azerbaijan's banking system has been changed from "stable" to "negative." This is the opinion of the international rating agency Moody's, the review of which noted that it was a result of the influence of falling world oil prices and the February devaluation of the national currency. It will also affect the operating environment, the quality of assets of banks in Azerbaijan, their capital, profitability and funding.
Moody's forecast has been released for the coming year or 1.5 years in the expectation that by the end of this year, the share of problem loans in total loan portfolio will increase from 11.4% in 2014 to at least 15% by the end of this year.
The agency experts believe that due to the revaluation of assets in foreign currency following the devaluation, the capital adequacy of banks in the country may be reduced by 2% (by March 31, the Central Bank estimated the capital adequacy of banks at 17.3% with a minimum requirement of 12%).
According to forecasts of the agency, the growth rate of GDP in Azerbaijan in 2015 will slow to 1% and in 2016 it will be 1.7%. --17D-
Economics
-
S&P Global Ratings has revised its risk assessment of Azerbaijan’s banking sector, upgrading the outlook from "stable" to "positive."
-
In recent days, there have been claims that bread prices in Azerbaijan have risen. Social media users report that the price of bread has increased by 5-10 qepiks. According to consumer complaints, it is difficult to find weight information on factory-produced bread, commonly known as "zavod çörəyi" in Azerbaijan. In many cases, bread packaging does not include weight details. Similarly, bread sold at smaller bakeries and tandir houses often lacks information apart from the price.
-
A trilateral meeting of the foreign ministers, transport ministers, energy ministers, and heads of customs services of Russia, Iran, and Azerbaijan is set to take place soon to discuss the progress of the Rasht-Astara railway project, a key element of the International North-South Transport Corridor (INSTC). This was announced by Iran’s Ambassador to Russia, Kazem Jalali.
-
Azerbaijan and Tatarstan continue to strengthen trade and economic cooperation, based on mutual interests in energy, mechanical engineering, petrochemicals, agriculture, and transport. Bilateral relations have shown steady growth, supported by regular visits of official delegations and participation in international economic forums.
Leave a review