The probability of obtaining a "red card" by 3-4 banks is very high. This is due to the low volume of the deposit portfolio, the economist Samir Aliyev said.
According to him, even the efforts made by banks to improve the health and solve financial difficulties will not save them from the expected danger. "Processes for the recovery are conducted in a non-transparent form and the decision to close the banks is accepted on subjective criteria," the expert said.
Samir Aliyev noted that AZN is gradually losing ground and dollar loans are a kind of "time bomb." Therefore, the capitalization of banks can only temporarily help them keep the position, but it does not consider them from imminent collapse, experts predict.
"The decision of the Financial Markets Control House (FMCH) on the elimination of licenses of four banks is mainly preventive in nature. FMCH priority is to reduce the number of banks. Therefore, the remaining banks should think about the merger, "concluded Samir Aliyev.
Licenses of 12 banks have been revoked over the past 2 years. Today in Azerbaijan there are 33 banks. --08D
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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