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Economical news
Bulletine Economics 

2017 October 05 ( Thursday )  17:55:49
Print version
Русский Azərbaycan


Tomatoes in Second Place after Oil in Azerbaijani Exports

Baku / 05.10.17 / Turan: In the first 7 months of 2017 Azerbaijan exported products of non-oil sector for 855 million US dollars, the State Customs Committee of Azerbaijan reported. 1,333 subjects of the Azerbaijani market were engaged in export production.

The top five countries that bought Azerbaijani goods included Russia, with exports to that country totaling $ 311 million, Turkey ($ 178 million), Georgia ($ 78 million), Sweden ($ 77 million), and Turkmenistan ($ 38 million).

The most purchased Azerbaijani non-oil commodity was tomatoes (tomato paste). This product was exported for $ 127.9 million. In the second place is gold ($ 60.7 million), then polyethylene (in the primary form with a specific weight of less than 0.94 - $ 54.4 million).

In comparison with the corresponding period of 2016, in the first 7 months of this year, cotton fiber exports were up 8.3 times, electricity - 3.2 times, tea - by 60%, vegetables and fruits - by 42%, chemical products - by 30%, aluminum and aluminum goods - by 29%, alcohol and nonalcoholic beverages - by 26%, plastics and plastic goods - by 12%.

In July 2017, 459 economic entities exported non-oil products for $ 117 million.

In July 2017, the main export commodities were gold, sour and sweet cherries, methanol, tomatoes, polyethylene (primary form with a specific weight of 0.94), cast-iron semi-finished products (with a carbon content of more than 0.25%), semi-finished aluminum plates (rectangular plates with a thickness of more than 0.2 mm, sheets, and stripes), white sugar, apricots, etc.

In July, Russia ($ 37 million), Turkey ($ 34 million), Sweden ($ 10 million), Georgia ($ 9 million) and Turkmenistan ($ 5 million) entered the top five countries that bought Azerbaijani non-oil products, the State Customs Committee of Azerbaijan reported. -0-

Natig Jafarli Offers Customs to Explain Difference in Price of Butter in Baku and Tbilisi

Baku / 05.10.17 / Turan: Can the State Customs Committee explain why the New Zealand butter is sold in Baku at 18-19 manat a kilo, and in Tbilisi - at 10-11 manat, the economist Natig Jafarli wrote on his Facebook page in response to a statement by the State Customs Committee on the absence of a monopoly on the importation of butter into the country.

The Customs Committee issued a message stating that the increase in butter prices is not related to customs duties, since there have been no recent changes in duties.

Along with this, the Committee also refutes reports of a monopoly in this sphere, stating that 51 companies are engaged in importing butter into the country.

"Last year, butter was imported at 3.39 dollars a kilo, and this year it is imported at 4.28 dollars. The increase is due to the increase in butter prices in the world market," the State Customs Committee said in a statement.

N. Jafarli in his turn noted that if butter is imported to the country for $ 4.28 (or 7.2 manat), then with the addition of logistics costs it should cost 9.75 manat per kilogram.

"Why is butter sold for 18 manat? Where is it seen that the trade mark-up was one hundred percent?" the expert wonders.

Touching upon 51 butter importing companies, N. Jafarli stressed that if these companies belong to 3-4 persons, then this is already a monopoly. He said that more than a thousand legal entities and individuals are engaged in importing butter in Georgia, as a result of which a competitive market is being formed.

"The Customs Committee, why do residents of the border regions try to import butter to the country from Russia, Georgia, or Iran? The answer is simple - because the price there is lower than ours. And our customs officers do not allow them to carry 5-6 kilograms of butter across the border. The philosophy of customs is to protect the market and serve citizens, and not to encourage a group of people to get enriched," he concluded. -71D-

Construction of Two Social Residential Buildings to Cost AZN 6.1 Million

Baku / 05.10.17 / Turan: MIDA LLC under the State Agency for Housing Construction has signed an agreement with the company Mercury Inshaat for the construction of two residential buildings in the Yasamal residential complex. This is almost complete selection of companies for the construction of 29 social residential buildings in this residential complex.

The cost of the contract is 6 million 157.9 thousand manat. Mercury Inshaat LLC acts in this project in a consortium with the company Conco.

MIDA LLC also concluded the last contract for the construction of communications. Gas Oil Building Ltd. will lay all gas supply pipelines in the Yasamal residential complex.

Work in the Hovsan residential complex is still at the design level. A corresponding agreement was signed with the LLC Project Institute of the University of Architecture and Construction of Azerbaijan LLC. The cost of these works is estimated at 397,000 manat. ----08D

Electricity Distribution Company’s Capital Increased by 65%

Baku / 05.10.17 / Turan: The Cabinet of Ministers decided on October 3 to increase the authorized capital of Azerishig OJSC by 575 million manat or 65%.

According to the document, the company"s capital is brought up to 1 billion 460.6 million manat by issuing 287.5 million new shares. In accordance with regulatory acts, public investment in the capital of state-owned companies in the subsequent period is sent to their authorized capital. In 2016, investments in the development of the electricity distribution network amounted to 261 million manat.

Azerishig OJSC completed the years 2015-2016 with a loss of 25.6 million manat and 31.3 million manat, respectively. -----08D

Baku International Airport Starts Legal Purchases

Baku / 05.10.17 / Turan: The Baku International Airport announced the results of purchases, which for the first time in its activities were conducted on a legal basis - competitive procurement of goods and services. In 2016, the Chamber of Accounts blamed Azerbaijan Airlines for evading legal procurement procedures.

From August to date, the Baku International Airport named after Heydar Aliyev announced more than 20 quotations, three of which were completed and the contracts were signed. AZN 14,191 will be paid to purchase toilet paper of the company Araz Istehsal Service. Fans will be purchased from the company AGAT Ithalat Ihracat Dis Ticaret Limited for 915 EUR. To purchase one-time shoe covers of the company Meridian FF AZN 4,071 will be paid. For an airport with a passenger flow of about 3 million people a year, this can be considered quite a real price. For comparison, in June of this year, the Baku Office of Preschool Educational Enterprises and Orphanages paid an individual Fuad Verdiyev 16 times as much - AZN 66,780 for shoe covers. --08D

Money Supply Increased by 1,860,900,000 Manat

Baku / 05.10.17 / Turan: As of August 31, the money supply in Azerbaijan increased by 202,800,800 manat or 2.4% compared to the previous month, amounting to 8,671,200,000 manat.

In the third quarter, the money supply increased by 396 million 700 thousand manat or 4.8% compared to the second quarter, and since the beginning of the year the money supply grew by 810 million 700 thousand manat or 10.3%.

In a one-year comparison, the money supply increased by 1,860,900,000 manat or 27.3%. ----71D

Budget of SOFAZ for 2017 Revised

Baku / 05.10.17 / Turan: By the Decree of the Head of State Ilham Aliyev dated October 4 ( some parameters of the budget of the State Oil Fund of the Republic of Azerbaijan for 2017 have been revised. The increase in revenues from the increase in crude oil prices is planned to be used to finance the construction of the Star oil refinery in Turkey.

The revenue part of the SOFAZ budget was raised from 8 billion 370.5 million manat to 10 billion 813.8 million manat. The Fund"s expenses were raised by 759.1 million manat, of which 744 million manat will be used to finance the share of Azerbaijan in the construction of the oil refinery in Turkey. An additional 15 million manat will be allocated to improve the living conditions of internally displaced persons.

Net income from the sale of Azerbaijan"s share in oil and gas projects will amount to 9 billion 826.2 million manat, 30.1% more than forecasted at the beginning of the year. SOFAZ expects to get $ 963.9 million from the management of the state-controlled funds, 165 million manat more than it was forecasted. A certain growth is expected for other items of the Fund"s income.

As of July 1, 2017 SOFAZ assets were 34 billion 70.9 million US dollars, 4.9% more than at the beginning of the year. --08D

USD Exchange Rate Does Not Change, EUR Slightly Decreases

Baku / 05.10.17 / Turan: At the currency auction of the Central Bank on Thursday, the US dollar rate did not change, remaining at the level of 1.7002 manat.

In commercial banks, customers can buy dollars at 1.7030 - 1.7060 manat and sell them at 1.6850 - 1.70 manat.

The EUR exchange rate on October 5, compared with the previous day, fell from 2.0005 manat to 1.9994 manat.

Commercial banks buy EUR in the range of 1.9494 - 1.1.9790 manat and sell it at 2.00 - 2.30 manat. -71D-

3,045 Green Card Insurance Policies Issued in September

Baku/05.10.17/Turan: September 2017 recorded 3,045 Green Card international insurance policies issued by the insurance companies authorized to operate within the Green Card System. 1,719 of those Green Cards were issued to motor vehicles travelling to Islamic Republic of Iran and Turkey, whereas 1,235 - to Russia, Moldova and Ukraine and 91 - to all member states of the Green Card System (except Belarus and Israel).

During the reporting period the insurance companies collected 211,174 manat of Green Card insurance premiums.

2,445 of the issued Green Cards were registered with passenger cars, 313 - trucks, 267 - trailers, 18 - buses and 2 - motorcycles.

At present, 13 insurance companies which are the participants of Azerbaijani Compulsory Insurance Bureau are entitled to operate within the Green Card System. Those are Ateshgah Insurance Company OJSC, Standard Insurance OJSC, Ata Insurance OJSC, Khalg Sigorta OJSC, Pasha Insurance OJSC, AXA MBASK OJSC, AzSigorta OJSC, State Insurance Company of Azerbaijan Republic, Mega Insurance OJSC, Silk Way Insurance OJSC, Azerbaijan Industry Insurance OJSC, Gala Insurance OJSC and Gunay Sigorta OJSC. -71D----

Banks VTB and Nikoil Become Partners in ATM Network

Baku / 05.10.17 / Turan: VTB Bank (Azerbaijan) and Nikoil signed an agreement, within which VTB (Azerbaijan) cardholders can withdraw cash from Nikoil ATMs without commission.

Customers of VTB (Azerbaijan) have the opportunity to use other services presented at Nikoil ATMs, including the transfer of funds using the CashbyCode and CardtoCard services, obtaining a 3D secure password, and connecting to SMS notifications of card transactions.

The ATM network of VTB (Azerbaijan), in which the bank"s cardholders can withdraw cash without additional commission, is now represented by ATMs of VTB Bank in Georgia, Ukraine, Kazakhstan, Belarus, and Mail Bank (Russia), and the ATM networks of Access Bank, Pasha Bank and Nikoil Bank. -----71D

Central Bank Plans to Attract AZN 100 Million

Baku / 05.10.17 / Turan: The Central Bank is planning to raise AZN 100 million at the deposit auction on October 9. The funds will be attracted for a period of 14 days, at the weighted average rate of 10.01% - 14.99%.

Deposit auctions are held as part of anti-inflation measures. The Central Bank has started holding deposit auctions since June 2016. -----71D

Test of Finance Ministry Shows Banks Ready for Any Interest

Baku / 05.10.17 / Turan: The auction on placement of the Ministry of Finance bonds with a maturity of three months recorded a record interest rate of 4.5% per annum at the Baku Stock Exchange. This is the lowest level of yield on T-bills since 2015.

The Ministry of Finance put up T-bills on October 3 for a total of 10 million manat, which attracted 9 investors. They submitted 20 applications for a total of 32.4 million manat.

The result was successful for the Ministry of Finance. Compared with the previous auction held on August 1, interest rates fell from 7.78% to 4.5% per annum.

This year, the Ministry of Finance issued T-bills for AZN 600 million and state medium-term bonds (circulation period - 2 years) for AZN 100 million. In October this year, according to the schedule of placement, the Ministry of Finance intends to issue bonds for an additional 50 million manat. ----08D

Foreign currencies rates fixed by Central Bank

1 ABŞ dollarıUSD1.7002
1 AvroEUR1.9994
1 Avstraliya dollarıAUD1.3317
1 Argentina pesosuARS0.098
1 Belarus rubluBYN0.8659
1 Braziliya rialıBRL0.5424
1 BƏƏ dirhəmiAED0.4629
1 Cənubi Afrika randıZAR0.125
100 Cənubi Korea vonuKRW0.149
1 Çexiya kronuCZK0.0774
100 Çili pesosuCLP0.2692
1 Çin yuanıCNY0.2555
1 Danimarka kronuDKK0.2686
1 Gürcü larisiGEL0.6861
1 Honq Konq dollarıHKD0.2177
1 Hindistan rupisiINR0.0261
1 İngilis funt sterlinqiGBP2.2518
100 İndoneziya rupiasıIDR0.0126
100 İran rialıIRR0.0045
1 İsveç kronuSEK0.2098
1 İsveçrə frankıCHF1.7439
1 İsrail şekeliILS0.4836
1 Kanada dollarıCAD1.3625
1 Küveyt dinarıKWD5.6251
1 Qazaxıstan tengəsiKZT0.0049
1 Qırğız somuKGS0.0247
100 Livan funtuLBP0.1127
1 Malayziya rinqqitiMYR0.4021
1 Meksika pesosuMXN0.0929
1 Moldova leyiMDL0.0969
1 Misir funtuEGP0.0962
1 Norveç kronuNOK0.2136
100 Özbək somuUZS0.0211
1 Polşa zlotasıPLN0.465
1 Rusiya rubluRUB0.0295
1 Sinqapur dollarıSGD1.2472
1 Səudiyyə Ərəbistanı rialıSAR0.4534
1 SDR (BVF-nun xüsusi borcalma hüquqları)SDR2.3992
1 Türk lirəsiTRY0.4758
1 Tayvan dollarıTWD0.056
1 Tacik somonisiTJS0.1929
1 Yeni türkmən manatıTMT0.4858
1 Ukrayna qrivnasıUAH0.0634
100 Yapon yeniJPY1.5081
1 Yeni Zelandiya dollarıNZD1.2172