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Economical news
Bulletine Economics 


2017 August 07 ( Monday )  17:37:48
Print version
Русский Azərbaycan

 

Annual Inflation in Azerbaijan 14%

Baku / 07.08.17 / Turan: In July 2017, inflation in Azerbaijan compared with the previous month was 0.1%, the State Statistics Committee said.

According to the information, non-food products rose by 1.6% and services rose by 0.4%, while food products fell by 1%.

In the first seven months of this year, inflation was 14%, compared to the same period last year, including food products - 18.2%, non-food products - 12.6%, and services - 9.6%. ---71D

Ministry of Taxes Warns Singers

Baku / 07.08.17 / Turan: The Ministry of Taxes of Azerbaijan has warned singers about responsibility for concealing real incomes.

The Ministry of Taxes in a special message addressed to the singers reminded that financial sanctions and other measures to hold accountable apply to persons evading tax payments.

The Ministry of Taxes noted that as a security for payment of taxes, a measure is also applied to restrict the departure of a specific people from the country.

"In case of providing incorrect information on income in declarations, the revealed actual income will be compared with the information provided and through cameral calculations, the hidden profit will be restored in the personal account," the Ministry said.

The Ministry of Taxes has warned singers to comply with the requirements of legislation in order to prevent the occurrence of risks associated with their professional activities. -----71D

State Customs Committee Increased Transfers to State Budget by 18.8%

Baku / 07.08.17 / Turan: In July 2017 transfers of the State Customs Committee (SCC) to the state budget amounted to 256 million 610,400 manat.

Compared to the same period last year, transfers to the state budget increased by 68 million 819.76 thousand manat or 37.4%.

In general, for the first seven months of this year, SCC"s transfers to the state budget amounted to 1 billion 405 million 167.19 thousand manat (an increase of 18.8% compared to the same period last year).

In the first seven months transfers of customs duties to the state budget amounted to 373 million 513.79 thousand manat, VAT - 972 million 907.13 thousand manat, excises - 40 million 781.57 thousand manat, and road tax - 17 million 964.7 thousand manat. --71D

Fees of Insurance Companies Decreased by AZN 9,190,000

Baku / 07.08.17 / Turan: For the first half of 2017, insurance companies collected AZN 276 million 158 thousand, the Financial Markets Supervision Authority said.

It should be noted that in comparison with the same period last year, the fees decreased by 9 million 190 thousand manat.

During the reporting period, the volume of payments amounted to 124 million 410 thousand manat (an increase of 22 million 990 thousand manat).

For the first six months of this year, in the voluntary insurance market, compared to the same period of the previous year, fees increased by 16 million 666 thousand manat, amounting to 193 million 802 thousand manat. Payments increased by 23 million 427 thousand manat and amounted to 98 million 573 thousand manat. ------71D

Pasha Hayat Sigorta Leads in Insurance Premiums, Ateshgah Hayat Leads in Insurance Payments

Baku / 07.08.17 / Turan: The leader among insurance companies on fees in the first half of 2017 was Pasha Hayat Sigorta, which attracted 79 million 616 thousand manat, the Financial Markets Supervision Authority reports.

The first five also included Pasha Sigorta (66 million 663 thousand AZN), Ateshgah Sigorta (16 million 648 thousand AZN), Ateshgah Hayat (15 million 893 thousand AZN), and the state-run commercial insurance company Azersigorta (13 million 227 thousand manat).

In general, for the first six months, the fees of 22 insurance companies of Azerbaijan amounted to 276 million 158 thousand manat.

Over the reporting period, the leader in payments was Ateshgah Hayat (28 million 672 thousand manat). The first five also included Pasha Hayat Sigorta (22 million 305 thousand AZN), Pasha Sigorta (19 million 997 thousand AZN), Qala Hayat (11 million 363 thousand AZN), and Ateshgah Sigorta (7 million 528 thousand manat).

In total, 22 insurance companies of Azerbaijan paid 124 million 410 thousand manat in H1 of 2017. -----71D

4,951 International Insurance Green Card Policies Sold in July

Baku / 07.08.17 / Turan: In July of this year, insurers with the right to operate within the framework of the Green Card system concluded 4,951 international insurance contracts, 3,315 of which were contracts concluded with respect to vehicles leaving for Turkey and Iran, 1,546 - for Russia, Moldova and Ukraine, and 90 - for all countries participating in the Green Card system (with the exception of Belarus and Israel), the Compulsory Insurance Bureau informed.

At the same time the amount of insurance premiums collected by insurance companies on the concluded contracts in the reporting period amounted to 319,490 manat, with 4,027 of these contracts concluded on passenger cars, 478 - trucks, 413 - trailers, 27 - buses and 6 - motorcycles.

Currently, within the framework of the Green Card insurance system, thirteen insurance companies that are members of Compulsory Insurance Bureau operate. They are Ateshgah, Standard Insurance, Ata Insurance, Khalg Sigorta, Pasha Sigorta, AXA MBASK, AzSigorta, State Insurance Commercial Company of Azerbaijan, Mega Sigorta, Ipek Yolu Sigorta, Azerbaijan Senaye Sigorta, Qala Sigorta, and Gunay Sigorta. -0-

132,491 Electronic MTPL Agreements Registered in July

Baku / 07.08.17 / Turan: 132,491 electronic contracts on compulsory insurance of civil liability of vehicle owners (MTPL) were registered in the Compulsory Insurance Bureau Information System in July this year. Of these, 19,314 compulsory insurance contracts were concluded in respect of motor vehicles registered abroad that entered the territory of Azerbaijan with the purpose of transit. The amount of premiums collected by insurance companies under concluded contracts for the indicated period amounted to 10,343,618 manat.

In comparison with the same period last year, the number of insurance contracts and premiums increased by 29%.

In the meantime, since November 1 of the past year, MTPL contracts have been registered exclusively in the form of an electronic document. Contracts concluded on paper before this date will be valid until the expiration date.

On MTPL in Azerbaijan, there are thirteen insurance companies that are members of the Compulsory Insurance Bureau - Ateshgah, Standard Insurance, Ata Insurance, Khalg Sigorta, Pasha Sigorta, AXA MBASK, AzSigorta, State Insurance Commercial Company of Azerbaijan, Mega Sigorta, Ipek Yolu Sigorta, Azerbaijan Senaye Sigorta, Qala Sigorta, and Gunay Sigorta. -0--

Compulsory Real Estate Insurance Contracts Decreased by 26%

Baku / 07.08.17 / Turan: Compulsory insurance of real estate in Azerbaijan has decreased. As the Compulsory Insurance Bureau (CIB) informs, 8,076 contracts on compulsory real estate insurance were concluded in July. The premiums on compulsory insurance of real estate amounted to 1 282 916 manat.

CIB notes that the number of policies on compulsory insurance of real estate declined over the same period last year by 26%, and the volume of premiums increased by 5%.

"In April, 167 contracts on compulsory insurance of civil liability for real estate operations and 28 contracts on compulsory insurance of passengers were also signed," the report says. -0-

Supply at Deposit Auction Exceeded Demand More Than Three Times

Baku / 07.08.17 / Turan: At the deposit auction of the Central Bank of Azerbaijan, the supply exceeded the demand 3.36 times. Thus, the supply amounted to 504.8 million manat, against the demand of 150 million manat.

The funds were raised for a period of 14 days, at an average weighted rate of 10.01%.

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

Depositors of Eleven Bankrupt Banks Compensated 747 Million 793 Thousand Manat

Baku / 07.08.17 / Turan: The Deposit Insurance Fund compensated depositors of 11 bankrupt banks as a whole 747 million 793 thousand manat, the Fund said. This included AZN 43 million 222 thousand for Para Bank (98.5% of the total amount subject to compensation or AZN 43 million 884 thousand manat), AZN 72,196,000 for Zamin Bank (99.3% out of AZN 72 million 675 thousand manat), AZN 27,910,000 for Credo Bank (99.9% out of 27 million 914 thousand manat), and AZN 3 million 088 thousand for Deka Bank (98.7% out of 3 million 127 thousand manat), AZN 14,351,000 manat (98.2%) for Atra Bank (14 million 614 thousand manat), AZN 2 million 004,000 (95.8% from 2 million 090 thousand manat) for Qafqaz Inkishaf Bank, AZN 437 million 609 thousand for Bank Standard out of 441,154,000 manat (99.2%), AZN 1 million 837 thousand out of AZN 2 million 099 thousand for United Credit Bank (87.5%), AZN 24 million 191 thousand out of 24 million 937 thousand manat for Bank of Azerbaijan (97%), AZN 976,441 out of AZN 1 million 039 thousand (94%) for Gandja Bank, and AZN 120 million 400 thousand (98.2%) out of 122 million 642 thousand manat for Tekhnika Bank. -----71D

Tender for Audit of International Bank of Azerbaijan

Baku / 07.08.17 / Turan: The tender for the consolidated audit of the IBA for the first nine months of this year and the whole of 2017 has been announced.

The International Bank of Azerbaijan (IBA) reports that the external audit should be conducted in accordance with the International Financial Reporting Standards (IFRS), covering also the bank"s subsidiaries: IBA-Moscow, IBA-Georgia, Azerikard LLC, and International Leasing Company.

The state fee for participation in the tender is 100 manat.

Acceptance of bids for the tender will be held until September 18, 2017. The bids will be evaluated on September 19.

IBA was established in 1992 and is the largest bank in Azerbaijan. The share of the Ministry of Finance of Azerbaijan in the capital of the bank is 76.73%. -0--

Short-term Notes of Central Bank for 100 Million Manat Registered

Baku / 07.08.17 / Turan: The Financial Markets Supervision Authority (FIMSA) registered short-term notes of the Central Bank of Azerbaijan for a total of 100 million manat on August 4, FIMSA said.

FIMSA registered 1 million short-term notes at a face value of 100 manat each. The maturity of the notes is 28 days.

Earlier in July, FIMSA registered short-term notes of the Central Bank for a total of 400 million manat. -----71D

Profit in the Red

Baku / 07.08.17 / Turan: Stagnation in the banking sector of Azerbaijan continues, as evidenced by another report of the Financial Market Supervision Authority. According to the department, the assets of the country's banking sector as of July 1 of this year amounted to 30,036.9 million manat, which is 4.5% less compared to the beginning of the year.

During the reporting period, the clients were granted loans in the amount of 13,462.1 million manat or 44.8% of the banking assets. In the first half of this year, the loan portfolio of banks decreased by 15.5%. In addition, overall liabilities of banks decreased by 7.5% to 27 322.9 million manat, but the deposit portfolio grew by 1.7%, amounting to 16,687.2 million manat. Of these, 6,880.7 million manat fell on individual deposits, and 9,806.5 million manat - on deposits of legal entities. From the beginning of the year, household deposits decreased by 7.4%, and company funds increased by 9.2%.

As the independent economist Azer Mehdiyev told Turan, these figures show that the domestic banking sector has not yet overcome the crisis phase. Capital outflow continues, which is due to both withdrawal of deposits by investors due to their mistrust to credit institutions and redirecting finance to foreign real estate markets, as well as lower interest rates on deposits in foreign currency. In addition, credit institutions do not improve the conditions for deposits, and this provokes people to independently look for ways to generate income. Today, the proposals of banks barely cover inflation. So is not it better to invest in real estate or gold?

According to the expert, the Ministry of Finance is trying to find an alternative to such deposits and develop the securities market. However, Azerbaijan still lags far behind other countries of the world, where the population invests in securities, receiving a good profit. The share of such deposits in our country is extremely low, and usually our citizens place their savings in a deposit, while all over the world citizens actively participate in financial transactions with securities.

"However, there are other factors affecting the profitability of banks. The first is the need to increase bank reserve funds, caused by changes in the regulation of banking activities, as well as increased risks. This is a kind of "pillow of financial security". According to the reports of banks, it can be seen that the banks' expenses for creating reserves increased by 1.5 times as compared to the previous year, which led to a decrease in net profit in annual terms. A negative role is played also by the slowdown in the growth rates of the consumer market; therefore, the banks began to increase the amount of reservation. In a word, the risks of bankruptcy have increased, which makes us take preventive measures," Mehdiyev points out.

The situation in this sector is illustrated by the following data of the Financial Market Supervision Authority: the number of branches of banks in the country decreased by 9 and as of July 1 of this year amounted to 560. Compared to the beginning of the year, the number of bank employees decreased by 852 and amounted to 16,095 people.

The complexity of the situation in the financial sphere is confirmed also by the cofounder of the Center for Assistance to Economic Initiatives Samir Aliyev. According to him, the issue of problem loans remains unsolved. It is avalanche-like in nature. While the total amount of overdue loans as of March 1, 2017 was 1 billion 556.4 million manat, on July 1 this figure reached 1 billion 739.8 million manat.

It is difficult to forecast when the banking system of Azerbaijan will come out the "comatose state". As Aliyev points out, for this it is necessary to get rid of inefficient banks, to support not the promises but concrete investments in the real sector of the economy, to increase the business activity of people and, of course, to fight against monopoly and oligarchy. -0--

Foreign currencies rates fixed by Central Bank

1 ABŞ dollarıUSD1.7008
1 AvroEUR2.0061
1 Avstraliya dollarıAUD1.3504
1 Argentina pesosuARS0.0963
1 Belarus rubluBYN0.8729
1 Braziliya rialıBRL0.5432
1 BƏƏ dirhəmiAED0.4631
1 Cənubi Afrika randıZAR0.1269
100 Cənubi Korea vonuKRW0.1509
1 Çexiya kronuCZK0.0768
100 Çili pesosuCLP0.2616
1 Çin yuanıCNY0.253
1 Danimarka kronuDKK0.2697
1 Gürcü larisiGEL0.7088
1 Honq Konq dollarıHKD0.2174
1 Hindistan rupisiINR0.0267
1 İngilis funt sterlinqiGBP2.2209
100 İndoneziya rupiasıIDR0.0128
100 İran rialıIRR0.0045
1 İsveç kronuSEK0.2091
1 İsveçrə frankıCHF1.7497
1 İsrail şekeliILS0.469
1 Kanada dollarıCAD1.3456
1 Küveyt dinarıKWD5.6365
1 Qazaxıstan tengəsiKZT0.0051
1 Qırğız somuKGS0.0246
100 Livan funtuLBP0.1128
1 Malayziya rinqqitiMYR0.3972
1 Meksika pesosuMXN0.0951
1 Moldova leyiMDL0.095
1 Misir funtuEGP0.0957
1 Norveç kronuNOK0.2144
100 Özbək somuUZS0.0415
1 Polşa zlotasıPLN0.4727
1 Rusiya rubluRUB0.0284
1 Sinqapur dollarıSGD1.2499
1 Səudiyyə Ərəbistanı rialıSAR0.4535
1 SDR (BVF-nun xüsusi borcalma hüquqları)SDR2.4048
1 Türk lirəsiTRY0.4821
1 Tayvan dollarıTWD0.0564
1 Tacik somonisiTJS0.1931
1 Yeni türkmən manatıTMT0.4865
1 Ukrayna qrivnasıUAH0.0657
100 Yapon yeniJPY1.5363
1 Yeni Zelandiya dollarıNZD1.2586
QızılXAU2139.0962
GümüşXAG27.604
PlatinXPT1642.9728
PalladiumXPD1503.5072