Review of highlights in Azerbaijan's financial market for past week

Finance Materials 7 February 2022 09:17 (UTC +04:00)
Review of highlights in Azerbaijan's financial market for past week

BAKU, Azerbaijan, Feb. 7

By Nazrin Israfilova - Trend:

S&P Global Ratings upgraded the long-term and short-term credit ratings of Azerbaijan’s MuganBank OJSC from "CCC + / C" to "B- / B" last week, Trend reports.

The liquidity indicators of the bank have been improved and they are expected to increase in 2022 as well, the agency said.

According to S&P’s baseline scenario, MuganBank OJSC will maintain liquidity reserve and is unlikely to face a big outflow of customer deposits in 2022.

Besides, the agency forecasted that the bank's capitalization will remain below three percent this year.

S&P doesn’t expect the bank's rating to be upgraded from stable to positive over the next 12 months if a market share is not increased or asset quality is not improved as a result of the implementation of the bank's new strategy.

According to another report of this week, Azerbaijan’s Bank Respublika and the European Fund for Southeast Europe (EFSE) signed a loan agreement according to which a loan in the amount of $15 million will be issued to the bank.

These funds will be used to finance micro and small businesses, in particular, to back up businessmen in the districts. Thanks to the numerous branches of Bank Respublika the raised funds will create the conditions for supporting businessmen working in all Azerbaijani districts.

During the week it was also reported that in December 2021 foreign citizens using bank cards spent 171.7 million manat ($101 million) in Azerbaijan, which is 143.8 million manat ($84.6 million), or 6.3 times more compared to December 2020.

Along with the above, this week, Azerbaijan Entrepreneurship Development Fund said that it provided soft loans worth 130.6 million manat ($76.8 million) to finance 1,902 projects last year.

The turnover of securities on Azerbaijan’s Baku Stock Exchange (BSE) exceeded 1.1 billion manat ($647 million) in January 2022, which is by 29.32 percent less year-on-year.