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Head of NBA: Recommendations on Elimination of Negative Effect of Recent Increase in Prices to Be Submitted to Azerbaijan Government

Politics Materials 20 January 2007 14:48 (UTC +04:00)
Head of NBA: Recommendations on Elimination of Negative Effect of Recent Increase in Prices to Be Submitted to Azerbaijan Government

Elman Rustamov, the Chairman of the National Bank Board (NBA), said today that prices are liberalized and raised all around the World, but this process should be separated from increase on consumer goods, Trend reports.

Expressing his attitude towards the IMF statement concerning the recent decision by the Tariff Council of Azerbaijan concerning prices on energy carriers, public utilities tariffs, and intercity transport fare starting January 8, 2007, Mr. Rustamov said that they expected it.

The Statement spread by IMF says that the direct effect of changes in the energy prices should be separated from the inflation process. According to the calculations made by IMF experts, the recent regulation in the prices on energy carriers and public utilities will have its direct t effect on the index of consumer prices at a rate 4-5% and will be restricted by once-for-time increase.

According to the Head of the National Bank, the price increase will surely lead to the increase of the expenses of the enterprises involved in the production of the consumer goods. Therefore, it is not excluded that the process will affect the index of the consumer prices. It is planed to take measures in relation with it and the proposals will be presented to the Government of the country.

It includes strengthening the financial disciplines in the country. As the energy enterprises will receive more incomes form the price increase, the primary task is to ensure their transfer to the State budget. Finances will be allocated through the State budget for improving living standards of poor layers of the population, Rustamov said.

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