Azerbaijan, Baku / corr Trend I.Khalilova / In difference to Kazakhstan and Georgia, the potential expenses for the world liquidity crisis did not affect the banking system of Azerbaijan, William Williams, Director for Division on Capital Market Operations, said to the ceremony of signing of the first deal with the International Bank of Azerbaijan (IBA).
He considers that the essence of structural crisis in Kazakhstan and Georgia has nothing to do with the American mortgage crisis, because the borrowing from commercial banks was linked with the issue euro-bonds. Instead of efficient work with the funding sources they continued actively attracting capital from abroad.
"By this way, the market of Eurobonds was announced closed for Kazakh banks and no investor is interested in this product," Williams said.
However, the situation in Azerbaijan is a bit different, because Azerbaijani banks work with the population and the funds have been attracted to the interior market. Azerbaijani Eurobonds remain attractive for the international capital markets.
"If the IBA issue its Eurobonds in the current situation, there will be no problem with their placement, as the banking market in the country is stable and differs from the markets of neighboring countries," the IBA official said.
Meanwhile, he said that the cost of euro-bonds will be expensive, because the investors' attitude towards this instrument has changed and at present this method of borrowings remains to be one of expensive sources. Only after the stabilization of the situation the rates will reduce and the Azerbaijani euro-bonds can be placed at international capital markets at available conditions. However, it will hardly improve the attitude towards the Kazakh and Georgian banks, because investors are disappointed at these markets and will think prior to working with them.