Moody’s positively assesses financial reforms in Azerbaijan
Azerbaijan held a stable position at Ba2 in the latest report of Moody’s rating agency, Trend reports on Oct. 11 referring to the Financial Market Supervisory Authority of Azerbaijan (FIMSA).
According to the report, the reforms in the financial sector were aimed at reducing the credit risk of the population and restoring lending.
Moody’s rating agency stressed Azerbaijan’s status of a net lender for big foreign assets and ensuring domestic political stability by redirecting oil and gas revenues to other sectors as strong sides characterizing the country’s credit reliability.
According to the report, the reforms carried out in the fiscal and financial sectors may increase the stability of Azerbaijan’s sovereign credit reliability against shocks, as well as reduce the government’s debt and risks in the banking system.
Moody’s agency stressed the growth of loans as a positive trend in the country’s financial sector. According to Moody’s, lending to individuals and institutions has been growing since December 2018.
Moody’s rating agency regularly assesses the financial reforms in Azerbaijan. The government’s initiative to address the issue of problem loans was appreciated in the Moody’s previous report.