Long-term credit rating of JSC AGBank downgraded from "B" to "B". At the same time, the international agency Standard & Poor's affirmed the short-term credit rating of Azerbaijan at the level of "C". The outlook is 'Stable'.
Deterioration of the situation due to the fall of the year, capital ratios and profitability of the bank against the backdrop of rapid asset growth, increasing the cost of provisioning and the lack of new capital inflows. According to analysts of the agency, a slow increase in the quality of the loan portfolio had a negative impact on profitability and capitalization AGBank last year.
"The Bank will gradually stabilize the level of problem loans, while increasing the level of redundancy and maintaining capital ratios are not lower than the current level," - said the agency.
The first private bank in Azerbaijan AGBank was founded in 1992. Its shareholders are the International Finance Corporation (17.5%), the company Kazimir Partners (10%), individuals (70.59%), the rest - both private and state-owned enterprises. - 17D-
Economics
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On September 20, 2024, Volts Energy Ltd., an engineering company based in Abu Dhabi, and Azerbaijan’s Turan Energy LLC announced the creation of a new joint entity, TuranVoltsEnergy. This venture will focus on EPC (Engineering, Procurement, and Construction) projects in renewable energy and energy storage systems within Azerbaijan.
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The number of passengers traveling by air from Azerbaijan has seen a significant increase in 2024, rising by 26.7% from January to September compared to the same period last year. According to the State Agency for Tourism, a total of 2,548,897 people used air transport services to travel to 40 countries during this period.
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Azerbaijan’s prolonged border closures, approaching five years, have taken a profound toll on the labor market, particularly in border regions, where cross-border trade and services were once critical economic drivers. Official data highlights the stark disparity between the growing labor force and the lack of new job creation in these areas, underscoring the social and economic challenges faced by residents.
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Azerbaijan’s food imports have surged to unprecedented levels, with a significant rise recorded in the first nine months of 2024, according to data from the State Customs Committee. Food imports for January-September reached USD 1.755 billion, marking an 11.4% increase over the same period last year. This represents a USD 179.7 million increase compared to 2023, setting a record for food imports in the country’s history. Over the past decade, food imports have more than doubled, rising by 2.4 times, with a notable 52.5% growth in the last five years alone.
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