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Economical news
Bulletine Economics 

2017 August 08 ( Tuesday )  17:17:37
Print version
Русский Azərbaycan


State Committee for Property Affairs Main Enemy of Entrepreneurship - Akram Hasanov

Baku / 08.08.17 / Turan: In Azerbaijan, the state agency that is the first enemy of entrepreneurship and development of a market economy is the State Committee for Property Affairs, the expert Akram Hasanov believes.

On his Facebook page, the expert noted that law enforcement agencies, courts and others play a secondary role in creating barriers to business.

"The main institution of market economy is the right to property and, first of all, the right to own real estate and land. It is in the implementation of this right that there are big problems. The main economic problem is the issue of a realty ownership certificate," he said.

The expert stressed that in most cases, land ownership documents are not accurately drawn up, and even if they are formalized, the boundaries are not indicated correctly.

"For years you think it"s your land, but then you are told that it does not belong to you," he said.

Hasanov noted that the documents of business facilities are mainly in a deplorable state and the Committee specifically creates such conditions to put businessmen in a position dependent on the Committee. -71D-

Food Prices Rise by 18 Percent

Baku / 08.08.17 / Turan: For January-July of 2017 the cost of consumer products and services went up by 14%. This is stated in the message of the State Statistics Committee for August 7. According to the information, the prices of food products increased by 18.2%, and non-food prices increased by 12.6%. The paid services rendered to the population also increased by 9.6%.

In July, the cost of consumer goods and services increased by 0.1 percent, the cost of non-food products increased by 1.6 percent, and paid services rendered to the population increased by 0.4 percent. A meager decrease of 1% took place in the value of food products. Last month, beef, lamb, cheese, butter and olive oil, lemons, onions and garlic became more expensive. Flour, buckwheat, pasta, chicken meat, eggs, fish products, sunflower and corn oil, sugar, bananas, apples, plums and peaches fell in price.

As for the prices of non-food products - fabrics, footwear, building materials, gasoline, furniture and household goods, carpets and other floor coverings, small electrical appliances, refrigerators, vacuum cleaners, they rose in price.

Clothes, air conditioners, personal computers and mobile phones fell in price. -00 ----

Exports and Imports Declined

Baku / 08.08.17 / Turan: In the first half of 2017, compared to the same period last year, Azerbaijan's exports and imports decreased by 8.6% and 28.6%, respectively, the State Statistics Committee said.

In the first six months of this year, Azerbaijan's foreign trade turnover amounted to 10 billion 692.8 million dollars, including exports of 7 billion 283.1 million dollars and imports of 3 billion 409.7 million dollars. As a result, a surplus of 3 billion 873.4 million dollars was formed.

Of the total turnover, 39% fell to the share of the EU countries, 13.6% to the CIS, and 47.4% to other countries.

The largest volume of exports from Azerbaijan falls to Italy (23.1%). Among the leaders are also Turkey (11.7%), China (5.5%), Russia (5%), Portugal (4.5%), Georgia (4%), Israel (3.8%), Canada 3.7%), and Germany 3.3%.

Russia leads in imports (19.4%). In the list, there are also Turkey (16.8%), China (9.8%), Germany (5%), Ukraine (4.7%), the United States (4.4%), Italy (4%), and Iran (3.7%). -71D-

Baku Airport Reports, but High Prices Problem Remains

Baku / 08.08.17 / Turan: In January-July 2017 Baku International Airport named after Heydar Aliyev served almost 2.2 million passengers, the airport press service said.

Over the reporting period, the national air carrier Azerbaijan Airlines (AZAL) carried 1.25 million passengers, of which 329,000 were transported on domestic flights.

49.6% of the international transportations of the Baku airport came from AZAL, and 50.4% from foreign air carriers.

At the moment Baku Airport serves 29 airlines in 53 directions. Seven airlines have started flights since the summer of 2017 - IrAero, Jazeera Airways, ZagrosJet, Pegas Fly, Kish Air, Nordwind Airlines and Wataniya Airlines.

Starting from September this year, flights of the first Azerbaijani low-cost Buta Airways will begin.

For our part, we note that discussions on the relatively high prices of tickets for flights from Baku at the national air carrier and foreign airlines have been repeatedly initiated in the press and social networks. Representatives of foreign airlines explained their prices with high taxes and expensive service charges at the Baku airport. As an example, representatives of foreign airlines indicated the prices of the same company from Tbilisi.

It should be noted that the prices for tickets of individual airlines from Tbilisi and Baku in the same direction are strikingly different in favor of the Georgian capital. It is not uncommon for Azerbaijani citizens to prefer to fly abroad from Tbilisi.

The long-awaited Azerbaijani low cost airway company has not lived up to expectations either. So, the starting price of a simple one-way ticket is 29 euros. If you add to this at least hand luggage or other luggage, the price for low cost airway tickets will rise to 200 manats. In addition, the Azerbaijani low cost air carrier is not going to carry out flights lasting more than 3 hours. -71D-

Food Imports Grew by 24% in Three Years

(Economic realities through the eyes of experts)

Baku / 07.08.17 / Turan: Over the past seven months the volume of bank loans amounted to 2 billion 476, 2 million manats, which is 15.54% less compared to last year. However, last year, in comparison with the cycle earlier, this volume reached the bottom, having decreased compared to 2015.

"What does it mean?" the economist Natig Jafarli asks. - Throughout the world, there are three ways leading to economic activity - firstly, it is public investment. The second is bank loans to business (domestic investment) and citizens (consumer loans), and thirdly, foreign investments."

According to Jafarli, state investments are declining, and they have always been a source of corruption and bribery of political loyalty, i.e. they were not very effective, giving a special vector of economic activity. Now these costs have decreased, and after that, loyalty has dropped as well as primitive economic activity created at the expense of public expenditure.

"As for the banking sector, it is also in complete knockout. In general, banks are faced with the fact that they cannot return the issued loans and issue new ones, limiting themselves to primitive functions of currency exchange. However, in times of high oil prices, both entrepreneurial and consumer loans played a major role in economic activity, contributing to growth. Now this sphere has significantly decreased. Foreign investors, even at high oil prices, reluctantly invested in the non-oil economy. Now they have completely forgotten about Azerbaijan, but they will invest in the oil and gas sector, because the local government has no opportunity to violate the rules of the game," he said in an interview with Turan IA.

The expert noted that in all three cases an economic "jam" has been created, but official propaganda still assures that economic reforms are continuing, stability and tranquility are observed, cotton, grapes, hazelnuts and mulberries are grown, thus, economic indicators are allegedly growing.

"And here's the situation: according to today's official information, 102,342 bottles of wine were imported from Georgia over the past seven months, which is 170% more compared to the same period last year," the expert said. By the way, the Chairman of the Center for Sustainable Development Studies Vahid Maharramov told Turan that, over the past three years, food imports have reached 624 million dollars, an increase of 24%, or 122 million dollars. During this time, food exports fell by 81 million dollars. Import of meat increased 2.5 times, and dairy products - by 70%. The country's domestic demand for food wheat, tea, sugar and vegetable oils is 100% met by imports. Thus the food security has reached a critical level. -0-

Liabilities of Gunay Bank for Six Months Increased by 32.7%

Baku / 08.008.17 / Turan: Gunay Bank's assets in the first half of 2017 increased by 27 million 126 thousand manats or 23.1% to 144 million 376 thousand manats in the first half of 2017 compared to the beginning of the year.

During the reporting period, the bank's liabilities increased by 20 million 754 thousand manats or 32.7% and made up 84 million 128 thousand manats.

The total volume of deposits in the bank is 43 million 223 thousand manats, including the call deposits of individuals amounting to 2 million 607 thousand manats, the call deposits of legal entities amounting to 20 million 513 thousand manats, and the timed deposits of individuals amounting to 20 million 103 thousand manats.

For six months of this year Gunay Bank reduced its debt to the Central Bank of Azerbaijan from 19,202,000 manats to 18 million 100,000 manats.

The bank"s capital for the indicated time amounted to 60 million 247 thousand manats (an increase of 6 million 371 thousand manats or 11.8%).

In the first half of 2017, the bank showed a net profit of 4 million 473 thousand manats. -71D-

Change in Leadership of Bank Silk Way

Baku / 08.08.17 / Turan: By the decision of the general meeting of shareholders there was a change in the leadership of Bank Silk Way, the bank said.

The head of the bank"s Board Elchin Ahmedov was appointed the head of the Supervisory Board. Mahir Ahmedov became the new head of the bank"s Board.

E. Ahmedov was appointed First Deputy Chairman of the Board in 2009, and from 2012 he headed the Board. -71D-

USD Falls Slightly, EUR Rises

Baku / 08.08.17 / Turan: At the currency auction of the Central Bank on Tuesday, the dollar rate fell slightly - from 1.7008 manats to 1.7007.

Commercial banks sell USD in the range of AZN 1.70-1.71, and buy it at 1.66-1.6970 manats.

The euro exchange rate slightly increased on August 8 from 2.0061 manats to 2.0092.

The population can buy EUR in commercial banks in the range of 2.0122-2.0286 manats, and sell it at 1.9590-2.0 manats. -71D-

Assets of Access Bank Decreased by 17.6%

Baku / 08.08.17 / Turan: Access Bank"s assets in the first half of 2017 decreased by 186 million 236 thousand manats or 17.6% compared to the beginning of the year, amounting to 872 million 635 thousand manats.

During the reporting period, the bank"s liabilities decreased by 199 million 145 thousand manats or 19.8% and amounted to 807 million 266 thousand manats.

The volume of deposits in the bank grew by 10% or 28 million 617 thousand manats, reaching 313 million 463 thousand manats.

The debt to the Central Bank decreased from 30 million manats to 10 million manats.

The capital of Access Bank for the first six months of this year increased by 12 million 909 thousand manats or 24.6% and amounted to 65 million 369 thousand manats. -71D-

Situation with Lending in Banks of Azerbaijan

Over the past month, four commercial banks made changes in the annual interest rates of loans issued. In general, this applies to business loans in manats and dollars, as well as consumer loans allocated in manats.

So, Access Bank increased annual interest on automobile and repair loans from 25-26% to 25-28%, and mortgage loans from 24-25% to 24-28%.

Bank of Baku and Demir Bank reduced the lower level of the annual interest rate of cash money loans from 25% to 23% and from 27% to 26%, respectively.

Bank Respublika decreased the annual interest on three-month pawnshop loans by 10%. As a result, the annual interest rates of loans granted by the bank on the security of gold jewelry have changed from 36% to 26-36%.

Bank Respublika also introduced changes in the annual interest rates of business loans. Thus, the annual interest rates on micro credits allocated in manats decreased from 28-31% to 26-28%. And the annual interest rate of micro credits in US dollars increased from 12% to 15%.

In addition, over the past month Azerbaijan Senaye Bank restored both lending and business loans. However, loans are issued in a limited framework. So, consumer loans are given only to individuals working in the institutions of Azersun Holding, which includes the bank. And business loans are provided for business entities that are connected with this holding.

In addition, Nikoil Bank, which has so far only issued business loans, has restored consumer loans.

Experts consider it natural that banks increase their interest in issuing loans. The thing is that the Central Bank lowered the lower level of the interest corridor on July 22 from 12% to 10%. As a result, the annual profitability of notes sold by the body to banks and funds raised from banks through a deposit auction decreased from 12% to 10%.

That is, the money deposited by banks in securities and deposit accounts of the Central Bank does not bring a high income as before. The regulatory body, increasing the interest, gradually alienated the banks, forcing them to earn money by issuing loans. For this reason, the interest in note issue and deposit auction is weakening for banks. To allocate funds they resorted to an alternative and more advantageous option - lending.

Commercial bank Annual interest rate on consumer loans (AZN)
CashCarPawnshop MortgageRepair and construction
1Access Bank29%25-28%-24-28%25-28%
2AFB Bank26-30%----
3AG Bank-----
4Amrah Bank-----
5Ata Bank-----
6International Bank of Azerbaijan (IBA)27-29%----
7Azerbaijan Senaye Bank27%----
8Azer-Türk Bank24-26%----
9Bank AvrasiyaIndividuallyIndividually---
10Bank of Baku23-32%----
11Bank BTB32-38%25-27%34%23%-
12Bank Respublika30%-26-36%--
13Bank Silk Way16-18%----
14Bank VTB Azerbaijan-----
15Demir Bank26%----
16Express Bank28-30%-36-38%22-26%-
17Gunay Bank24%----
18Khalg Bank-----
19Capital Bank29%----
20Bank Melli Iran - Baku29%26%26%25%-
21Mugan Bank-----
22Nakhchivan Bank17-18%16-18%-11%-
23NBC Bank29-32%10-26%27%23-29%-
24Nikoil Bank25-28%16-2227-28%20%-
25National Bank of Pakistan - Baku-----
26Pasha BankIndividually----
27Rabita Bank30-32%-24-29%--
28Turan Bank17-29%19-21%29-36%-20-24%
29Uni Bank23-29%----
30Yapi Kredi Bank Azerbaijan28%23-24%-19-20%-
31Ziraat Bank AzerbaijanIndividuallyIndividually-Individually-

Commercial bank Annual interest rate on consumer loans (USD)
CashCarPawnshopMortgageRepair and construction
1AFB Bank13-17%----
2Azer-Turk Bank14-16%----
3Bank BTB-13-15%-23%-

Commercial bank Annual interest rate on business loans
Micro creditsMacro credits
1Access Bank28%19-22%28%19-22%
2AFB Bank20-24%-18-30%8-16%
3AG Bank----
4Amrah Bank----
5Ata Bank----
7Azerbaijan Senaye Bank---10-12%
8Azer-Turk BankPersonallyPersonallyPersonallyPersonally
9Bank Avrasiya----
10Bank of Baku26-32%-23-28%
11Bank BTB16%16%PersonallyPersonally
12Bank Respublika26-28%15%--
13Bank Silk Way----
14Bank VTB Azerbaijan----
15Demir Bank25-30%-20-23%16-22%
16Express Bank25-30%-20-25%-
17Gunay Bank----
18Khalg Bank---16-23%
19Capital Bank----
20Bank Melli Iran - Baku21-23%-21-23%-
21Mugan Bank----
22Nakhchivan Bank15%---
23NBC Bank21-23%10%20-24%10%
24Nikoil Bank--20%10%
25National Bank of Pakistan - Baku16-17%-16-17%-
26Pasha BankPersonallyPersonallyPersonallyPersonally
27Rabita Bank25-27%-14-18%22-26%
28Turan Bank24-26%-PersonallyPersonally
29Uni Bank28%-14%14%
30Yapi Kredi Bank Azerbaijan----
31Ziraat Bank AzerbaijanPersonallyPersonallyPersonallyPersonally

Foreign currencies rates fixed by Central Bank

1 ABŞ dollarıUSD1.7008
1 AvroEUR2.0092
1 Avstraliya dollarıAUD1.3469
1 Argentina pesosuARS0.0961
1 Belarus rubluBYN0.8715
1 Braziliya rialıBRL0.5441
1 BƏƏ dirhəmiAED0.463
1 Cənubi Afrika randıZAR0.1286
100 Cənubi Korea vonuKRW0.1513
1 Çexiya kronuCZK0.0769
100 Çili pesosuCLP0.261
1 Çin yuanıCNY0.2539
1 Danimarka kronuDKK0.2701
1 Gürcü larisiGEL0.7093
1 Honq Konq dollarıHKD0.2174
1 Hindistan rupisiINR0.0267
1 İngilis funt sterlinqiGBP2.2196
100 İndoneziya rupiasıIDR0.0128
100 İran rialıIRR0.0045
1 İsveç kronuSEK0.209
1 İsveçrə frankıCHF1.7481
1 İsrail şekeliILS0.4707
1 Kanada dollarıCAD1.3431
1 Küveyt dinarıKWD5.6337
1 Qazaxıstan tengəsiKZT0.0051
1 Qırğız somuKGS0.0246
100 Livan funtuLBP0.1128
1 Malayziya rinqqitiMYR0.3971
1 Meksika pesosuMXN0.0948
1 Moldova leyiMDL0.0953
1 Misir funtuEGP0.0956
1 Norveç kronuNOK0.2149
100 Özbək somuUZS0.0415
1 Polşa zlotasıPLN0.4723
1 Rusiya rubluRUB0.0283
1 Sinqapur dollarıSGD1.2501
1 Səudiyyə Ərəbistanı rialıSAR0.4535
1 SDR (BVF-nun xüsusi borcalma hüquqları)SDR2.3972
1 Türk lirəsiTRY0.4819
1 Tayvan dollarıTWD0.0564
1 Tacik somonisiTJS0.1931
1 Yeni türkmən manatıTMT0.4866
1 Ukrayna qrivnasıUAH0.066
100 Yapon yeniJPY1.5379
1 Yeni Zelandiya dollarıNZD1.2514