International Bank of Azerbaijan First Victim of Devaluation

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International Bank of Azerbaijan First Victim of Devaluation Anonymous 06/17/15 (Wed) 02:29:01 No.1211

>However, problems during the financial crisis of 2008-2009 were experienced not only by IBA. The then director of the Moscow office of Fitch Ratings for Financial Institutions Vladimir Markelov told Turan that in January-June 2009 asset quality deteriorated in all the Azerbaijani banks. The worst situation in this respect was observed in IBA.

>In the structure of problem loans of IBA 18.6% of them were overdue and 9.2% - restructured, on which the recipients once again came to agreement with the bank to change the terms of payment.

>The Chairman of the NGO Center for Economic Research Gubad Ibadoglu believes that this problem occurs in the IBA and other domestic banks due to their poor management. According to him, financial managers should take into account the global financial crisis and be able to manage risks in the crisis.

>More than half (50.2%) of the shares in IBA are owned by the state. According to Ibadoglu, in the case of deterioration of the situation the government will take measures to rescue the bank. The expert believes that dealing with banks through lending will give only temporary results and there is a need for more drastic measures.

> IBA is the only bank where a majority stake is owned by the state, which is not in a hurry with its privatization. For unclear reasons, the government put aside the roadmap for restructuring, reform and privatization of IBA, prepared by the IMF in 2012. Its implementation, according to the IMF, will open opportunities for the development of private banks, as well as diversifying the risks facing the country's banking system.

>In Azerbaijan there were 46 banks. And IBA no longer holds a special position - it is bypassed by Pasha Bank, Capital Bank and others. At the moment, the ratio of the assets of Azerbaijani banks to GDP is relatively low - about 30%.

https://archive.is/vRFuZ

Anonymous 06/17/15 (Wed) 04:31:24 No.1214

File: 1434515485552.jpg (148.84 KB, 609x1778, 87:254, FireShot Screen Capture #0….jpg)

This is out of date. Here is the current situation

Currency, bonds

http://www.bloomberg.com/news/articles/2015-06-11/billions-spent-belie-economy-woes-as-azeris-host-european-games

The manat has lost 25 percent against the dollar this year, the second-worst performance in the world behind the Belarusian ruble, because of a devaluation in February. The yield on the government’s 2024 dollar bond rose to 4.67 percent on Wednesday, the highest in more than two months, according to data compiled by Bloomberg. The International Monetary Fund warned of “a sharp and possibly sustained decline” in economic output if oil prices fall further. Growth will slow to 1.8 percent this year from a preliminary 2.8 percent in 2014 and 5.8 percent in 2013, the Washington-based lender said in a report this week. The budget deficit will widen to 7 percent of gross domestic product in 2015 from 0.4 percent last year, it said.

IMF changes outlook on Azerbaijan’s economy for 2015

http://abc.az/eng/news/88931.html

The IMF mission has finished its work in Baku, associated with an overview of the economic situation in Azerbaijan. Following the Baku visit mission’s head Raja Almarzogi has stated that although at the beginning of the year the forecast on the growth of the Azerbaijani economy amounted to 0.6%, including the oil one by 3.5%, now it ahs been increased. "After the current visit and received statistical data for Jan-Apr the forecasts have been changed. So, by the end of 2015 the forecast on Azerbaijan’s economic growth was raised up to 1.8%, including the non-oil sector growth up to 6.5%. Inflation in Azerbaijan, although earlier this year it was projected at two-digit level, now is forecasted to be 8.5%,” Almarzogi said.

He added that by the end of 2015 GDP is going to reach AZN 66 bn. "In 2016 Azerbaijan’s GDP will make AZN 68 bn with an annual rise of 2.8%. Inflation is expected to reach 6.6% next year,” Almarzogi said. He points out that after the manat devaluation Azerbaijan has taken serious steps, including stabilization of currency and gold reserves and prevention of price increases, which nevertheless may still grow by the end of 2015.

"The 2015 budget is expected to be implemented with a deficit because of the budgeted $90 per barrel of oil. Price forecasting at the level of $50 in budget of 2016 is more real until 2019," Almarzogi emphasized. He stressed that in order to achieve all the goals aimed at ensuring stable economic growth, Azerbaijan should diminish all possible risks, in particular reduce the share of the International Bank of Azerbaijan, which is a risk for the economy. To ensure the stability of fiscal policy the country needs to develop indices of industrial production.

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The above corroborated by the pic related by the IMF

It is possible that Mr, Almarzogi's trip to Azerbaijan was more than a little 'exciting' for him, if you get my drift. I don't entirely trust these numbers, but there's nothing better to go off on