Tag Archives: economy

S&P cuts Kazakhstan outlook

JUNE 13 2014 (The Conway Bulletin) – Credit rating agency Standard & Poor’s reduced Kazakhstan’s outlook to negative from stable, hitting the country’s reputation as a target for foreign investment.

Slower economic growth estimates and the limited impact of monetary policy have dented Kazakhstan’s reputation and Standard & Poor’s said it could cut its BBB+ rating within the next two years. BBB+ is Standard & Poor’s third lowest investment grade rating.

Kazakhstan cut the value of its tenge currency in February by 20% and Standard & Poor’s said that if the Central Bank was forced to intervene again it would almost certainly cut the rating.

Since February sanctions against Russia over its actions in Ukraine have hit the entire former Soviet region, cutting economic growth rates.

ENDS

(News report from Issue No. 189, published on June 18 2014)

Georgian Bank gains relience

JUNE 11 2014 (The Conway Bulletin) – TBC Bank became the second Georgian company to list on the London Stock Exchange (LSE) after it raised $240m at an IPO. The IPO valued TBC at around $640m and demonstrated that investors are keen to buy shares in companies in Georgia once again, nearly six years after it fought a brief war with Russia.

ENDS

(News report from Issue No. 189, published on June 18 2014)

Bread prices spike in southern Kazakh city

JUNE 5 2014 (The Conway Bulletin) – Bread prices in Shymkent increased by around a third overnight to 50 tenge ($0.25) a loaf from 35 tenge, media reported. This is the second bread price spike in south Kazakhstan this year and it could spark protests. Regional government officials blamed bakeries for the price increase.

ENDS

(News report from Issue No. 188, published on June 11 2014)

FDI increases in Georgia

JUNE 10 2014 (The Conway Bulletin) – Foreign investment in Georgia jumped to $260m in the first quarter of 2014, a 15% increase from a year earlier, the statistics agency reported. Foreign investment is a vital part of Georgia’s economy. The government has tried to restore investor confidence after two destabilising elections.

ENDS

(News report from Issue No. 188, published on JUNE 11 2014)

Armenia’s parliament ratifies road loan

JUNE 10 2014 (The Conway Bulletin) – Armenia’s parliament ratified a $100m loan from the Asian Development Bank that will be used to finance the construction of a road that will improve transport links between the north and the south of the country. The road, linking Talin and Lanjik, is considered an important part of the general infrastructure upgrade.

ENDS

(News report from Issue No. 188, published on June 11 2014)

Tajik aluminium company discusses Georgia route

JUNE 9 2014 (The Conway Bulletin) – Tajikistan is not known as a trading powerhouse, its main export is migrant labour to Russia, but a recent low-level diplomatic meeting in Dushanbe once again highlights the importance of its aluminium smelter.

Tajikistan’s deputy transport minister, Sherali Gandjalov and Georgia’s ambassador in the country, Konstantin Zhgenti met to discuss securing trade routes for aluminium exports from TALCO through the South Caucasus trade corridor, Asia-Plus reported.

Mr Gandjalov and Mr Zhgenti specifically discussed the Georgian port of Poti on the Black Sea coast. Poti is a major transit point for raw materials needed for Tajik aluminium production as well as an export route for finished aluminium products heading to European markets.

But all is not well at TALCO, the state aluminium- smelter. It is saddled with debts and last year laid off 20% of its staff as global aluminium prices bottomed out.

These former TALCO staff will most likely be adding to Tajikistan’s most economically successful export — migrant workers to Russia.

ENDS

(News report from Issue No. 188, published on JUNE 11 2014)

No devaluation says Kazakh Central Bank Chief

JUNE 2 2014 (The Conway Bulletin) -Rumours of another devaluation of the tenge triggered a spike in demand for dollars, media reported. The buying of dollars forced Kazakh Central Bank chief Kairat Kelimbetov to step in and deny that another tenge devaluation was planned. Kazakhstan devalued the tenge by 20% earlier this year.

ENDS

(News report from Issue No. 187, published on JUNE 4 2014)

Kazakh city to become financial center

JUNE 2 2014 (Conway Bulletin) – Kazakhstan intends to build a centre for Islamic finance in Almaty, Central Bank chief Kairat Kelimbetov said. Mr Kelimbetov said the centre would be modeled on the City of London and offer potential investors tax and visa benefits.

ENDS

(News report from Issue No. 187, published on June 4 2014)

Bondholders reject Kazakh bank deal

MAY 29 2014 (The Conway Bulletin) – Investors holding bonds in Kazakhstan’s Alliance Bank rejected a restructuring deal, Reuters reported. This would have been the second restructuring deal in four years for the bank that was effectively nationalised in 2009 during the global financial crisis. A new deal will have to struck to re-structure the debt.

ENDS

(News report from Issue No. 187, published on JUNE 4 2014)

Azerbaijan promotes its Eurobonds

MAY 29 2014 (The Conway Bulletin) -The International Bank of Azerbaijan (IBA) started promoting its Eurobond issue. IBA plans to issue between $350m and $500m of Eurobonds. Azerbaijan’s ministry of finance owns 50.2% of IBA. The Eurobond sale will indicate investors’ appetite for Azerbaijan.

ENDS

(News report from Issue No. 187, published on JUNE 4 2014)