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Fitch assessment not to affect IFC further activities in Azerbaijan

Business Materials 27 January 2006 18:43 (UTC +04:00)

В"The state still keeps control over the economic stability and I think there are large opportunities, such were the comments of the regional finance manager in Central Asia and Eastern Europe of the International Finance Corporation (IFC) Martin Kimmig of the Fitch Ratings rating agency statement to Trend.

В"I do not want to doubt the results of the agencys assessments, however, my personal view is such, that Azerbaijan receives large revenues from the oil sector and as for the stability in the country I do not find the position is out of control. You may see yourself, what are the prices for the immovables, consumer goods in Azerbaijan, the regional manager notes.

According to him, IFC is a long-term investor and do not invest for a short period of time, therefore it is interested in availability of developed and firm institutions in Azerbaijan, which can also exist under the hard macro-economic situation. In this regard he does not consider that the rating agency assessment will affect the IFC activities in Azerbaijan.

Fitch Ratings confirmed on 24 January sovereign ratings of Azerbaijan in foreign and local currency at the BB level (as it was in 2004), the forecast is stable. The agency noted availability of the non-stability risk in the country, despite the rapid economic growth and increase of the export volumes. The agency experts think these tendencies will facilitate further improvement of the sovereign solvency and growing rating of Azerbaijan (in case of ongoing structural reforms aimed at the support of private investments and development of the non-oil sector and by further accumulation of considerable foreign assets under the State Oil Fund management.

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