14.10.2019. Moody's provides positive analysis on financial reforms conducted in Azerbaijan.

Moody's reaffirmed Azerbaijan's position at a stable Ba2 rating in its latest report. The report notes that ongoing financial sector reforms will gradually lower contingent liability risks of the banking sector and support the credit recovery.

According to the report, net creditor status due to accumulation of large foreign assets and domestic political stability achieved by government's deployment of hydrocarbon revenues were evaluated as credit strengths.

The report also notes that ongoing reforms in the fiscal and financial sectors may increase Azerbaijan's sovereign credit reliability, shore up resilience to shocks, as well as reduce the government's debt burden and the risks of the banking system.

Moody's has marked the growth of loans in the country's financial sector as a positive trend. According to the agency's estimates, loans to individuals and businesses are growing from December 2018.

Moody's has regularly evaluated reforms in the financial sector of Azerbaijan, and a report released earlier by the agency praised the government's efforts to address problem loans.

source: Fimsa.az