According to the statement, while the control on the capital affects development and economic stability, it may damage the loan portfolio of the country. However, a low Azerbaijan’s borrowing level and external assets will save its rating.
“As a response to the manat devaluation in 2015, Azerbaijan imposed 20%-tax on capital outflow this week. This step reflects difficulty in achievement of two political purposes. These purposes include saving of SOFAZ assets, as well as exchange rate for social stability. All these measures will save manat exchange rate. We think the control on the capital will not affect the banking sector because of a dollarization in this sector. However, Central Bank must provide support to banks if needed”, the statement said.
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