ASTANA, Kazakhstan, March 28. Recent data from Moody’s Ratings highlights the challenges and opportunities faced by Kazakhstan's private sector banks in securing long-term, affordable funding, Trend reports via Moody’s Ratings.
"While developing banks in the country have access to long-term government funds, private banks are facing difficulties in finding similar financing, which hinders their ability to support long-term investment projects important for modernizing the local economy," Moody’s statement notes.
According to Moody’s analysts, to overcome this, private banks are increasingly turning to long-term borrowing in the market, which may help them expand lending, reduce falling profit margins, and lock in returns for a longer period. This move is driven by the fact that Kazakhstan’s economy continues to grow and diversify, creating new lending opportunities.
Moody’s also noted that ForteBank JSC recently issued eurobonds worth $400 million, marking a rare instance of a private bank in Kazakhstan obtaining external financing through this mechanism in more than ten years.
“It is expected that this move will lead to sustainable growth in bond issues, including securitization, from both private and public organizations, if market conditions remain favorable,” Moody’s added.
In comparison, other countries in the region, such as Azerbaijan and Armenia, are facing similar challenges with long-term financing. However, Uzbekistan has significantly greater access to long-term finance, largely due to government loans and international financing for strategic and social projects.
Moody's Ratings is a credit rating system provided by the international rating agency Moody's Investors Service. These ratings assess the creditworthiness of various borrowers, including governments, corporations, banks, and other financial institutions, as well as debt instruments such as bonds.
