Overseas Assets of Azerbaijani Banks Increased by 47.5% for Fifteen Months
The foreign assets of the banking sector of Azerbaijan for the period prior to the devaluation (January 2015) increased from 4 billion to 5.9 billion US dollars or 47.5% in April 2016. At the same time, foreign liabilities of banks declined from 6.3 billion to 4.9 billion dollars.
According to the economist Rovshan Agayev, before the devaluation of the manat the Azerbaijani banks' foreign liabilities exceeded their assets of the kind by $ 2.5 billion. Today there is a negative balance of $ 1.3 billion.
According to the expert, this trend can be explained with two factors: the banks are trying to reduce their foreign liabilities; deterioration of their credit rating, and sharp decline in the real sector’s need for bank loans.
Note that, among others, foreign assets include cash in foreign currency, and foreign liabilities include deposits of foreigners in foreign currency.
Note that the increase in the foreign assets of banks took place against the background of the loss of value of many foreign currencies to the Azerbaijani manat on average by 7-8% for the last 2-3 months. ---08D
-
- Economics
- 13 May 2016 00:01
Economics
-
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.
-
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.
-
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.
-
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.
Leave a review