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Economical news
Bulletine Economics 

2017 October 19 ( Thursday )  17:59:26
Print version
Русский Azərbaycan


More than 100 Thousand Tons of Cotton Delivered to Ginneries

Baku / 19.10.17 / Turan: As of the morning of October 19, over 100,000 tons of cotton harvest was collected and sold to cotton ginning plants in Azerbaijan, the State Statistics Committee reports. According to the same source, this is the highest rate since 2007.

This year, cotton was sown to 136.3 thousand hectares, more than in the last four years combined (116 thousand hectares). The area under cotton is partially expanded at the expense of state lands. For the timely collection and reduction of manual labor, the government purchased 140 cotton harvesters this year. Nevertheless, according to experts, harvesting does not match the schedule and therefore, they believe that the government will not be able to fulfill the promised amount of cotton harvest - about 270 thousand tons.

In order to compensate for the losses from the reduction of crude oil prices, the government of the country started developing agriculture in 2016, including the planting of fruit gardens, expanding plantations of cotton, tobacco, sugar beet, etc. Still there are only small positive advances in the growth of exports of fruits and vegetables.

In 2016, cotton areas in Azerbaijan amounted to 51.3 thousand hectares and 89.4 thousand tons of raw cotton was harvested. Part of the recycled cotton is used in local textile enterprises. In the city of Mingachevir an industrial park is being built for the entire cycle of cotton processing and the production of final products. ----08B

American Companies Invited to Cooperate in Agrarian Sector

Baku / 19.10.17 / Turan: A group of representatives of US companies Argus Limited USA, Lindsay and WCC International discussed issues of bilateral cooperation in the Ministry of Agriculture the day before.

Representatives of US companies expressed interest in the production of agricultural plants in Azerbaijan, and the creation of modern irrigation systems. Seyfaddin Talibov, the Deputy Minister of Agriculture, who introduced them, spoke about the population of agricultural lands, the processes of land erosion in Azerbaijan and noted the government's interest in cooperation with companies from the United States to take measures to return them to a crop rotation.

The Ministry of Agriculture and the State Agrarian University, have close ties with John Deere, which supplies agricultural machinery to Azerbaijan and exchanges experience in training low-level personnel. At the expense of the US government, the equipment of the zonal veterinary laboratories has been updated. ----08D--

Draft State Budget of 2018 Submitted to Parliament

Baku / 19.10.17 / Turan: The Draft State Budget of Azerbaijan for 2018 has been submitted to the Parliament.

This was reported by the chairman of the parliamentary committee on economic policy, industry and entrepreneurship Ziyad Samedzadeh.

At the same time, he did not specify the parameters of the state budget. According to him, in late October - early November, discussions will begin with parliamentary committees. ---71D

$76 Million Raised from Aluminum Exports

Baku / 19.10.17 / Turan: For nine months of this year, Det-Al Aluminum LLC exported 99% of the production - primary aluminum and its processed goods (rolls and painted and unpainted sheets). Taking into account the growing demand for aluminum products, the company is working on an investment project to bring the production capacity up to 100 thousand tons per year, Director General of Det-Al Holding LLC Sarhan Babayev told Turan.

This year, the company raised $ 76 million from export of products. The products are mainly purchased by partners in Russia, Belarus, Turkey, Italy, Jordan and Kazakhstan. Azerbaijan aluminum is used in the automotive industry, electrical engineering, construction products, and in packaging industry.

According to Sarhan Babayev, the company has a certain success in setting up the production of aluminum raw materials based on local fossils. It is about obtaining alumina from the alunite at the Zeylik field, which belongs to the state-owned Azeraluminium OJSC. Details on the production of final aluminum products in the city of Ganja are being studied.

Ganja Aluminum Plant Det-Al Aluminum was commissioned in 2011. The capacity of the enterprise is 50 thousand tons. In 2013, the plant for the production of semi-finished products with the same capacity was put into operation. The company employs 1,400 people. ------08B--

SOCAR First Sells Property at Open Auction

Baku / 19.10.18 / Turan: For the first time SOCAR is preparing to sell property on its balance sheet, by means of an open auction. The fact that the auction of the State Oil Company, which is to be held on October 26, is the first case in its history was confirmed also by Mirvari Gahramanly, the head of the Public Organization for the Protection of the Rights of Oil Workers.

However, lawyers say there are a number of shortcomings in the announcement of the auction. And this can cast doubt on its further results.

The trust of the oil company Integrated Drilling Works put up for auction on October 11 materials that are not required for carrying out oil and gas operations in SOCAR. The announcement posted on SOCAR"s website notes that 112 different products are on sale. Although they were listed, their original price was not specified. For sale were exhibited pistons, gaskets, fixing rings, tips, oil filters, compressors for blowing pipes, fuel pumps and other materials commonly used. But the auction announcement does not note if they were already used or not.

For this reason, the agency Turan sent a request to the Auction Commission, but no response came. But the auction announcement has already been changed. There were indicated prices for the goods offered to the buyers.

According to the Civil Code, the organizer must inform about the auction at least thirty days before the bidding. This is done so that the persons intending to participate in the auction can prepare. However, SOCAR plans to hold auctions for 15 days. Expressing his attitude to this issue, jurist Gurban Mammadov, a lawyer, told Turan that an auction conducted in violation of the procedure established in the legislation for this purpose may be declared invalid by the court. To do this, those who are interested in participating in the bidding process should apply to the court with a suit. If the court satisfies the claim, then the contract signed with the auction winner will be considered invalid.

In the Complex Drilling Works trust, the person responsible for contacts with potential buyers, participants in the auction, Farid Salifbeyli could not answer Turan's question about the reasons for the desire to hold an auction in such a short time. And although he promised to forward this issue to the legal department of the company, until the publication of this article from SOCAR there was no response.

The property suitable for the development of SOCAR's oil and gas fields was estimated in advance, in total, about 1.5 million manat. All property is sold in "one basket". That is, the one who intends to become a buyer, making a deposit for participation in the auction in up to 10% of the amount of the preliminary assessment, must purchase all the goods. -0-

Bank Silk Way Reduces Debt to Central Bank by 5 Million Manat

Baku / 19.10.17 / Turan: The assets of Bank Silk Way for three quarters of 2017 as compared to the beginning of the year increased by 1 million 651 thousand manat or 0.4%, amounting to 405 million 643 thousand manat.

The bank"s liabilities for the reporting period decreased by 5 million 370 thousand manat or 1.9% and amounted to 282 million 161 thousand manat.

The volume of deposits in the bank increased by 936 thousand manat or 0.5%, reaching 170 million 980 thousand manat.

Call deposits of individuals increased from 35 million 636 thousand manat to 39 million 464 thousand manat, and those of legal entities increased from 7 million 501 thousand manat to 22 million 409 thousand manat. Timed deposits of individuals decreased from 120 million 381 thousand manat to 102 million 097 thousand manat, and those of legal entities grew from 6 million 525 thousand manat to 7 million 009 thousand manat.

During this period, the bank's debt to the Central Bank of Azerbaijan decreased from 22 million 500 thousand manat to 17 million 500 thousand manat.

The capital of Bank Silk Way reached 123 million 481 thousand manat (an increase of 7 million 020 thousand manat or 6%).

For the three quarters of 2017 the bank showed a net profit of 6 million 691 thousand manat. ---71D

Volume of Problem Loans Crossed Red Line - Gubad Ibadoglu

Baku / 19.10.17 / Turan: If urgent measures on problem loans are not taken, they will become even more, as a result of which the financial markets will suffer greatly, and the national economy will be in a very difficult situation. This was written by the economist Gubad Ibadoglu on his Facebook page.

He believes that the volume of troubled loans has passed the red line. "At present, the number of clients of 31 banks operating in the country is 5,720,291, of which 2,428,032 have loans in banks. The overdue loans of these customers exceed 1,824 million manat and constitute 15% of the loan investments," the expert wrote.

According to him, according to the latest data, the volume of overdue loans exceeds the target reserves envisaged to cover possible losses on loans, which is 1,635,700,000 manat.

"This means that the volume of overdue loans has crossed the red line. According to reports provided for internal use in March, debts non-repayable over 30 days rose to 44.2% and in June - to 51.7%. At the present time, the volume of suspicious debts is approaching 60%," he said. -----71D

Azerbaijan Received $500 million EBRD Loan for TANAP

Baku / 19.07.17 / Turan: On October 18, the European Bank for Reconstruction and Development (EBRD) allocated a $ 500 million loan to Azerbaijan to finance the Trans-Anatolian gas pipeline project (TANAP). This is stated in the EBRD press release.

The information indicates that the loan was allocated for the implementation of the TANAP project, which is the largest part of the South Gas Corridor (SGC). The funds will be provided to CJSC South Gas Corridor. It is planned to send part of the loan to finance part of the TANAP obligations.

It should be noted that in September the delegation led by the EBRD President Suma Chakraborty visited Azerbaijan. On September 7, the delegation was received by Azerbaijani President Ilham Aliyev. At this meeting, the question of financing the SGC project was discussed.

TANAP and TAP make up different parts of SGC providing for the transportation of Azerbaijani gas to Europe. The TANAP project involves the delivery of gas from the Shahdeniz-2 field to Turkey and Europe. The TAP project is a continuation of TANAP. Gas from the Shahdeniz-2 deposit via Greece and Albania across the Adriatic Sea will be transported to the south of Italy and from there to Western Europe. The project will be fully implemented in 2020. The work on TANAP has been completed by 70%, and on TAP - by more than 40%.

The South Gas Corridor project is supported by the World Bank, EBRD, EIB, AIIB and ADB. The obligations of Azerbaijan in connection with SGC are $ 11.9 billion for 2014-2019. Until the end of last year, $ 6 billion was fulfilled from these funds.

Currently, the cost of the SGC project is about $ 40 billion. -0-

USD Exchange Rate Unchanged, EUR Rises

Baku / 19.10.17 / Turan: At the currency auction of the Central Bank on Thursday, the USD rate remained unchanged at the level of 1.7001 manat.

Commercial banks buy American currency in the range of 1.6850-1.7000, and sell it at 1.7030-1.7080 manat per USD.

The euro exchange rate on October 19 rose slightly from 2.0000 manat to 2.0063 manat. In commercial banks, the euro can be bought at 2.0185-2.0327 manat per EUR. -71D-

Foreign currencies rates fixed by Central Bank

1 ABŞ dollarıUSD1.7001
1 AvroEUR2.0063
1 Avstraliya dollarıAUD1.3347
1 Argentina pesosuARS0.0981
1 Belarus rubluBYN0.8683
1 Braziliya rialıBRL0.5361
1 BƏƏ dirhəmiAED0.4629
1 Cənubi Afrika randıZAR0.1253
100 Cənubi Korea vonuKRW0.1501
1 Çexiya kronuCZK0.078
100 Çili pesosuCLP0.2719
1 Çin yuanıCNY0.2564
1 Danimarka kronuDKK0.2695
1 Gürcü larisiGEL0.6836
1 Honq Konq dollarıHKD0.218
1 Hindistan rupisiINR0.0261
1 İngilis funt sterlinqiGBP2.2469
100 İndoneziya rupiasıIDR0.0126
100 İran rialıIRR0.0045
1 İsveç kronuSEK0.2089
1 İsveçrə frankıCHF1.7339
1 İsrail şekeliILS0.4854
1 Kanada dollarıCAD1.3634
1 Küveyt dinarıKWD5.6276
1 Qazaxıstan tengəsiKZT0.0051
1 Qırğız somuKGS0.0248
100 Livan funtuLBP0.1127
1 Malayziya rinqqitiMYR0.4022
1 Meksika pesosuMXN0.09
1 Moldova leyiMDL0.0983
1 Misir funtuEGP0.0964
1 Norveç kronuNOK0.2137
100 Özbək somuUZS0.0211
1 Polşa zlotasıPLN0.4737
1 Rusiya rubluRUB0.0296
1 Sinqapur dollarıSGD1.251
1 Səudiyyə Ərəbistanı rialıSAR0.4534
1 SDR (BVF-nun xüsusi borcalma hüquqları)SDR2.396
1 Türk lirəsiTRY0.4627
1 Tayvan dollarıTWD0.0562
1 Tacik somonisiTJS0.1931
1 Yeni türkmən manatıTMT0.4858
1 Ukrayna qrivnasıUAH0.0643
100 Yapon yeniJPY1.5045
1 Yeni Zelandiya dollarıNZD1.2068