Tenge devaluation will boost growth of credit risks in banking sector - S&P
Almaty. May 22. KazTAG - Devaluation of Kazakhstani national currency will increase credit risks in the banking sector, reports Standard&Poors international rating agency.
"The national currency devaluation will boost increase of high risks in the banking sector of the state in 2014," the agency said.
Tenge devaluation will not result in economy destabilization as a whole, although increase of national currency volatility is forecasted.
"We believe tenge devaluation will reduce consumer capacity and lead to reduction of rapidly growing consumer crediting observed in the past three years," said the rating agency.
According to the agency the main problem of banking sector of Kazakhstan is disproportionately high share of problematic credits.
"According to our scenario we expect that the share of problematic credits (32% at the end of 2013) will considerably decrease in 2014," reads the report.
The agency believes the declared not more than 15% index of problematic credits by 2014 is hardly achievable unless effective measures on cleaning of credit portfolios of banks are taken.