BAKU, Azerbaijan, Apr.1
By Zeyni Jafarov – Trend:
The forecast of the banking system of Azerbaijan has been raised from ‘negative’ to ‘stable’, Trend reports citing the Moody’s international rating agency.
This was achieved by improving macroeconomic conditions and reducing the risk of deteriorating asset quality, the agency noted.
According to the data, the change in forecast reflects the agency's expectations that the gradual lifting of restrictions amid COVID-19 and the recovery of global oil prices will support GDP growth and ease the working conditions of banks and their borrowers.
“However, the business environment will remain complicated as government support is phased out and recovery paths remain unequal across the CIS region,” the agency said.
According to Moody’s data, Azerbaijan’s GDP will increase by 4 percent this year, after a 4-percent decline in 2020. Also, the growth rate of the Azerbaijani economy will reach 3 percent by 2022, which means a decline of 1 percent compared to the forecast for 2021.
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