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Economical news
Bulletine Economics 


2017 October 04 ( Wednesday )  17:44:09
Print version
Русский Azərbaycan

 

Prime Travel Market-2017 to Be Held in Baku

Baku / 04.10.17 / Turan: Tomorrow JW Marriot Absheron Baku will host a tourist event Prime Travel Market-2017, which will be attended by representatives of 120 local and foreign companies of the luxury tourism industry.

As part of the event, participants will have an opportunity to hold meetings with potential partners and experts of the sphere, to receive information on the latest trends in the leading luxury hotels and new market trends.

Prime Travel Market-2017 is organized by Prime Consulting Company with the support of the Ministry of Culture and Tourism and the Association of Tourism of Azerbaijan. -----08D

Azerbaijan to Spend $ 118 Million on Purchase of Agricultural Machinery in 2017

"By order of large enterprises, including enterprises engaged in the production of cotton, in 2017 it is planned to purchase 5,602 units of agricultural machinery. On its purchase, it is planned to spend $ 101,415,050 and 14.2 million EUR," the materials of the monitoring over the implementation of measures reflected in the Strategic Roadmap for the production and processing of agricultural products say. In particular, this year it is planned to purchase 150 cotton harvesters and 1,270 different tractors.

In addition, in 2017, 59 cotton harvesters JD 9970 will be delivered to Azerbaijan. "The total cost of this equipment will be $ 17.58 million. The contract for its delivery was concluded as early as 2016," the materials emphasize.

Meanwhile, according to expert estimates, cotton yields will not significantly affect the welfare of the population. "According to official data as of October 2 of this year, the points for the reception of raw cotton received 54,000 tons from the producers. Taking into account the unstable weather conditions, less productivity is expected - in total up to 85,000. This is at best. The cost price of each ton of cotton is approximately 400 - 450 dollars with the sale at a price of 700 - 750 dollars. It turns out that the companies will earn a maximum of $ 25 million, and this is not correlated with reports on the export paradise, with slave, sometimes forced labor of cotton growers. The budget will receive about 6 million dollars, and after all, food prices have already risen by 15%, and by the new year, according to tradition, there will be an even greater spiral of prices," the economist Natig Jafarli said.

He also cited the example of 2004, when 196,000 tons of cotton was harvested in Azerbaijan, which was a record harvest of recent years. "But did this figure affect the budget, or the well-being of citizens or the state? And if not, what will the benefit of the harvest of 80,000 - 85,000 tons of cotton be like?" the expert asks. Moreover, experts insist that the increased attention of the state to the development of traditional branches of agriculture, in particular, cotton growing, should not create problems for animal husbandry. The fact is that over the past two years, natural meadows, pastures and clover fields, which are in use by villagers and farmers, have been transferred to cotton crops for municipalities and local executive authorities. Faced with a shortage of fodder and hay, a forced mass slaughter of livestock began in farms. Subsequently, the domestic production of meat and milk decreased sharply, and the import of these products sharply increased," Vahid Maharramov, head of the agricultural department of the Economic Research Center, said.

The fact that the rise in price of meat was caused by the fall in domestic production as a result of the transfer of natural pastures for sowing "priority" crops was confirmed by meat sellers in a conversation with the editorial staff. In the opinion of the sellers, because of the rise in price of feed, prices will continue to grow.

Due to the reduction in the fodder base, domestic production of meat and milk is rapidly falling, giving way to overseas products. Consumer prices are growing, Maharramov said. So, according to the State Customs Committee, for eight months of this year, shipments of meat from abroad increased to 28,249.8 tons, which in monetary terms is 42 million 979 thousand dollars. For comparison, in the same period last year, meat imports were at the level of 16,920.19 tons (20 million 375.73 thousand dollars). A similar situation exists with foreign milk supplies - in the first eight months of this year, 5,364.93 tons of milk was imported for 8 million 589.91 thousand dollars, while last year for the same time period 3,479.27 tons of this product was imported for 5 million 193.17 USD, which means increase by one and a half times.

The growth of imports is a consequence of a fall in domestic production, which provokes price increases. So, according to the Ministry of Agriculture, the cost of beef starts from 11 manat per kilogram, and mutton starts from 12 manat, but this is the lower price limit. In Azerbaijan, meat has become the most expensive in the region, which forces the population of the regions bordering Russia to go to neighboring Dagestan to buy food, local media write.

According to expert estimates, the decline in domestic production of meat and dairy products with subsequent increase in imports leads to an outflow of currency from the country. -0-

New Company under Well-known Brand Name

Baku / 04.10.17 / Turan: The Ministry of Taxes registered SAB Zehmet-Ruzi LLC. Since 2002, SAB has been producing dairy and meat products.

The director of the new company is the former director of the enterprise Zehmet-Ruzi Aliheydar Farajullayev. The company is also located in the city of Khirdalan. Turan IA could not find out whether SAB Zehmet-Ruzi LLC and Zehmet-Ruzi LLC are relevant. Since July 2012, data on the founders and their participation in the company are confidential.

In March of this year, the media wrote that the founder of Zehmet-Ruzi LLC, Sabir Babayev, sold his share to one of the structures of the Pasha Holding group. The information was not refuted. Immediately after this operation, the capital of Zehmet-Ruzi LLC increased from 900 to 11 million manat. Iskander Iskanderov was appointed instead of A. Farajullayev .

Over 15 million manat was invested in the primary capital of the new company - SAB Zehmet-Ruzi LLC. ------08B

SOCAR Announces Merger of Two Entities

Baku / 04.10.17 / Turan: On October 4, SOCAR announced the merger of two structural subdivisions on the basis of the Production Association Azneft. This structure included LLC SOCAR-Umid.

LLC SOCAR-Umid was established in June 2008 with participation of SOCAR (80%) and offshore company Nobel Oil Exploration & Production (Federation of Saint Kitts, 20%). At establishment, the capital of the joint venture was 10,000 manat. Today the authorized capital of LLC SOCAR-Umid is 458 million 985 thousand manat.

The maritime structure of Umid is a gas field. According to exploration estimates, this field has about 200 bcm of natural gas and about 30-40 million tons of condensate. ------08D

Azerbaijan Fulfills Vienna Agreement

Baku / 04.10.17 / Turan: In September, Azerbaijan fulfilled its obligations under the agreement of the oil extracting states on reducing daily oil production, the Energy Ministry said.

According to the report, in September 2017, the daily oil production in Azerbaijan amounted to 785,700 barrels. This included 733,000 barrels of crude oil, 52,700 barrels of condensate, and 19,300 barrels of oil products.

The Ministry notes that Azerbaijan has thus fulfilled the agreement on reducing oil production of OPEC and non-OPEC countries. That is, Azerbaijan reduced daily oil production by 35,000 barrels, thus fulfilling its obligations.

Oil production in January this year amounted to 793,900 barrels, in February - 776,400 barrels, in March - 733,300 barrels, in April - 781,100 barrels, in May - 785,300 barrels, in June - 793,700 barrels, in July - 796,700 barrels, and in August - 734,800 barrels.

As you know, on December 10 last year, 11 OPEC and non-OPEC countries reached an agreement in Vienna to reduce oil production. The agreement was concluded for six months. Azerbaijan also joined this agreement. On May 25, the OPEC Council of Ministers at a meeting in Vienna extended the agreement for another 9 months. -0-

11,461 Compulsory Real Estate Insurance Contracts Registered in September

Baku / 04.10.17 / Turan: In September of the current year, 11,461 compulsory real estate insurance contracts were registered.

The insurance premiums collected by insurance companies under these contracts amounted to 2 million 488,303 manat. The subjects of insurance for 9,463 of these contracts were residential houses and apartments, 15 - administrative buildings, and 1,983 - other real estate.

Compared to the same period last year, there was a decrease in the number of contracts concluded by 37%, and the value of insurance premiums increased by 112%.

In the reporting period, there were also concluded 136 insurance contracts on compulsory insurance of civil liability for real estate operation. The amount of insurance premiums under these agreements amounted to 10,590 manat. The number of registered contracts for compulsory individual insurance of passengers against accidents was 51, with the sum of insurance premiums of 13,859 manat.

Currently in the country in the field of compulsory real estate insurance there are 13 insurance companies that are members of the Compulsory Insurance Bureau (OJSC Ateshgah, OJSC Standard Insurance, OJSC Ata Insurance, OJSC Khalg Sigorta, OJSC Pasha Sigorta, OJSC AXA MBASK, OJSC AzSigorta, State Insurance Commercial Company of the Republic of Azerbaijan, OJSC Mega Sigorta, OJSC Ipek Yolu Sigorta, OJSC Azerbaijan Senaye Sigorta, OJSC Gala Sigorta, and OJSC Gunay Sigorta). ------71D

Access Bank Increases Authorized Capital by AZN 20 Million

Baku / 04.10.17 / Turan: As a result of the purchase of an additional issue of 4.8 million shares by the shareholders of Access Bank, the authorized capital of the bank was increased by 20 million manat. Thus, the authorized capital of Access Bank is 140 million manat. The issue of shares and registration took place on September 30, 2017.

"The secondary increase in capital once again demonstrates the desire of the shareholders to consistently strengthen the bank"s capital. This in turn will allow the bank to meet the financial requirements of our customers to the maximum and to strengthen the positions of the bank that finances small and medium-sized businesses," the head of the board of Access Bank, Rolf Reichard said. ----71D

Currency Reserves of Central Bank Increase by 25% in Year’s Term

Baku / 04.10.17 / Turan: Foreign exchange reserves of the Central Bank of Azerbaijan increased by 66 million 300 thousand dollars or 1.3% by the end of September compared to the previous month, amounting to 5 billion 167 million 500 thousand dollars.

Compared to the second quarter of this year, in the third quarter, foreign exchange reserves increased by 203 million 400 thousand dollars or 4%, and since the beginning of the year, foreign exchange reserves increased by 1 billion 193 million 100 thousand dollars or 30%.

In a one-year comparison, foreign exchange reserves grew by 1 billion 034 million 800 thousand dollars or 25%. -----71D

Deposits from Beginning of Year Decreased by 7.5%

Baku / 04.10.17 / Turan: Assets of 31 banks operating in Azerbaijan as of August 31, 2017 as compared to the beginning of the year decreased by 1,947,800,000 manat or 6.2%, amounting to 29,491,700,000 manat, the Financial Markets Supervision Authority reported.

Over the reporting period, banks" liabilities amounted to 26,568,200,000 manat (a reduction of 2,962,500,000 manat or 10%), and capital amounted to 2,923,600,000 manat (an increase of 1,014,800,000 manat or 53.2%).

Deposits of the population since the beginning of the year have decreased by 7.5% or 560,400,000 manat, amounting to 6,871,700,000 manat.

The banks" debt to the Central Bank decreased from 1,695,500,000 manat at the beginning of the year to 609,300,000 manat at the end of August.

During the reporting period the banks had a net profit of 350,300,000 manat. ------71D

Number of Bank Employees Decreased by 780 People

Baku / 04.10.17 / Turan: The number of branches of banks operating in Azerbaijan as of August 31 was 560, according to the report of the Financial Markets Supervision Authority of Azerbaijan. This is 9 branches less compared to the beginning of 2017.

The number of branches increased from 131 to 142, and ATMs - from 2,461 to 2,495 units.

The number of bank employees since the beginning of the year decreased by 780 people, from 16,947 to 16,167. -----71D

Situation with Accepting Deposits in Banks of Azerbaijan

In Azerbaijan, the tendency of cheapening bank deposits continues. In September, five banks lowered their annual interest rates. The reduction covers deposits in USD and EUR, as well as in AZN.

Thus, the annual yield of deposits placed for one year decreased in Access Bank from 13-15% to 12-13%, in Azer-Turk Bank from 13.5-14% to 10.5-11%, in Nikoil Bank from 14-15% to 10-10.5%, and in Uni Bank from 10-11% to 9-10%.

In addition, the annual interest rate of one-year deposits in the US currency was reduced - in NBC Bank from 7-8% to 3-5%, in Nikoil Bank - from 3-3.5% to 2-3%, and in Uni Bank from 1.3-2% to 1.3-1.5%.

Nikoil Bank also reduced the annual yield of one-year deposits invested in EUR from 7-8% to 3-5%.

The first table below shows the annual interest of classical deposits. And the second table shows the annual interest of cumulative deposits.

Commercial bank In monthly interest payment In interest payment at maturity
AZNUSDEURAZNUSDEUR
1Access Bank12.3%2.3%1.3%13.0%3.0%2.0%
2AFB Bank7.0%3.0%----
3AG Bank12.0%2.0%1.5%12.0%2.0%1.5%
4Amrah Bank15.0%3.0%1.0%15.0%3.0%1.2%
5Ata Bank14.0%5.0%2.0%15.0%6.0%3.0%
6International Bank of Azerbaijan (IBA)11.0%2.5%-12.0%2.5%-
7Azerbaijan Senaye Bank12.0%1.0%0.5%12.0%1.0%0.5%
8Azer-Turk Bank10.5%0.4%-11.0%0.5%-
9Bank Avrasiya12.0%2.0%0.25%13.0%2.25%0.5%
10Bank of Baku12.0%1.9%1.0%13.0%2.0%1.05%
11Bank BTB13.0%1.5%-14.0%2.0%-
12Bank Respublika11.5%1.5%-12.5%2.0%-
13Bank Silk Way2.0%1.5%- 2.0%1.5%-
14Bank VTB Azerbaijan14.0%3.0%-15.0%3.0%-
15Demir Bank16.0%5.0%3.0%16.5%5.5%4.0%
16Express Bank13.5%2.0%-15.0%2.5%-
17Gunay Bank---12.0%3.0%-
18Khalg Bank6.0%1.0%0.5%---
19Capital Bank9.0%--10.0%0.1%-
20Bank Melli Iran - Baku Branch8.0%--10.0%--
21Mugan Bank15.0%3.0%-16.0%6.0%-
22Nakhchivan Bank---10.0%10.0%-
23NBC Bank15.0%3.0%3.0%16.0%5.0%5.0%
24Nikoil Bank10.0%2.0%-10.5%3.0%-
25National Bank of Pakistan - Baku Branch------
26Pasha Bank------
27Rabita Bank15.0%1.25%-15.0%2.0%0.5%
28Turan Bank16.0%4.0%1.5%16.5%4.5%2.0%
29Uni Bank9.0%1.0%0.5%10.0%1.5%0.5%
30Yapi Kredi Bank Azerbaijan10.0%0.75%0.5%11.0%1.0%0.75%
31Ziraat Bank Azerbaijan8.5%1.0%-9.0%1.0%-

Commercial bank In monthly interest payment In interest payment at maturity
AZNUSDEURAZNUSDEUR
1Access Bank---12.0%3.0%1.5%
2AFB Bank------
3AG Bank13.0%2.0%-14.0%3.0%-
4Amrah Bank15.0%3.0%1.0%15.0%3.0%1.2%
5Ata Bank---13.0%4.0%2.0%
6IBA------
7Azerbaycan Senaye Bank------
8Azer-Turk Bank------
9Bank Avrasiya---10.0%1.0%0.25%
10Bank of Baku12.0%1.9%1.0%13.0%2.0%1.05%
11Bank BTB13.0%1.5%-14.0%2.0%-
12Bank Respublika---7.0%0.5%-
13Bank Silk Way------
14Bank VTB Azerbaijan14.0%--6.0%0.5%-
15Demir Bank---13.0%4.0%-
16Express Bank13.0%1.0%-14.0%1.5%-
17Gunay Bank------
18Khalg Bank6.0%1.0%-6.0%1.0%-
19Capital Bank9.0%--10.0%0.1%-
20Bank Melli Iran - Baku Branch------
21Mugan Bank------
22Nakhchivan Bank---2.0%2.0%-
23NBC Bank15.0%3.0%3.0%---
24Nikoil Bank10.0%2.0%-10.5%3.0%-
25National Bank of Pakistan - Baku Branch------
26Pasha Bank------
27Rabita Bank12.0%1.0%----
28Turan Bank------
29Uni Bank---10.0%1.3%-
30Yapi Kredi Bank Azerbaijan---11.0%1.0%0.75%
31Ziraat Bank Azerbaijan------

Foreign currencies rates fixed by Central Bank

1 ABŞ dollarıUSD1.7002
1 AvroEUR2.0005
1 Avstraliya dollarıAUD1.336
1 Argentina pesosuARS0.0977
1 Belarus rubluBYN0.8659
1 Braziliya rialıBRL0.541
1 BƏƏ dirhəmiAED0.4629
1 Cənubi Afrika randıZAR0.1249
100 Cənubi Korea vonuKRW0.1489
1 Çexiya kronuCZK0.0772
100 Çili pesosuCLP0.2686
1 Çin yuanıCNY0.2555
1 Danimarka kronuDKK0.2688
1 Gürcü larisiGEL0.6878
1 Honq Konq dollarıHKD0.2177
1 Hindistan rupisiINR0.026
1 İngilis funt sterlinqiGBP2.2548
100 İndoneziya rupiasıIDR0.0126
100 İran rialıIRR0.0045
1 İsveç kronuSEK0.2093
1 İsveçrə frankıCHF1.7485
1 İsrail şekeliILS0.4826
1 Kanada dollarıCAD1.3635
1 Küveyt dinarıKWD5.6289
1 Qazaxıstan tengəsiKZT0.005
1 Qırğız somuKGS0.0247
100 Livan funtuLBP0.1127
1 Malayziya rinqqitiMYR0.4023
1 Meksika pesosuMXN0.0935
1 Moldova leyiMDL0.0967
1 Misir funtuEGP0.0964
1 Norveç kronuNOK0.2134
100 Özbək somuUZS0.0211
1 Polşa zlotasıPLN0.4632
1 Rusiya rubluRUB0.0294
1 Sinqapur dollarıSGD1.2495
1 Səudiyyə Ərəbistanı rialıSAR0.4534
1 SDR (BVF-nun xüsusi borcalma hüquqları)SDR2.3958
1 Türk lirəsiTRY0.4768
1 Tayvan dollarıTWD0.0559
1 Tacik somonisiTJS0.1932
1 Yeni türkmən manatıTMT0.4858
1 Ukrayna qrivnasıUAH0.0637
100 Yapon yeniJPY1.5093
1 Yeni Zelandiya dollarıNZD1.22
QızılXAU2161.3793
GümüşXAG28.3763
PlatinXPT1542.0814
PalladiumXPD1547.182