Azerbaijan, Baku, Jan. 8 / Trend , I.Khalilova/ The International
Finance Corporation (IFC) plans in the third decade of January to publish the
results of the business climate monitoring based on a survey among small and
medium businesses in Azerbaijan, a source at the project on improvement of the
business climate in the country said on Jan. 8. Presentation of the report is
expected to take place in February.
IFC commenced the study
of the business environment in Azerbaijan at the end of 2007. The survey was
conducted among 1,800 companies.
"The aim of the project is to simplify the administrative procedures for
private companies to enable them to function effectively on the market," The
procedures include the simplification of business registration (the
introduction of a "single window"), which has already been carried out, and the
program to simplify issuing licenses and permits, which is being developed," said
head of the project, Boris Divjak.
In 2009, the IFC intends
to offer its recommendations to the Government of Azerbaijan for each type of
licenses and permits. The Corporation plans to develop a strategy for the
country to reform the business licensing. Common rules of issuing and revocation
of licenses will be developed as part of these activities. The collection of
licensing reports is scheduled to be completed in the middle of this year so
that to design a unified permit registry by the end of 2009.
Thirty public agencies are involved in designing of the unified permit registry.
A meeting in the regions with about 30 heads of enterprises and the business
circles is expected to take place at the beginning of this year in order to
determine the list of permissions they use. Thematic workshops for the companies
engaged, for example, in the restaurant business and other sectors will be held
in order to specify the areas which require permits and sanctions.
A preliminary survey showed that the annual expenditures for business licensing in Azerbaijan total 35 million manats. These calculations based on interviewing the local companies were made taking into account the formal and informal payments.
"If one third of various types of license or permissions is cancelled or at least simplified, the expenditures of businesses will shirk up to 12.6 million manats per year," Divjak said.
He said the above-mentioned measures will enable the government reduce budget expenditures. Around 16.3 million manats are spent per year to arrange granting license and permissions while income totals 12.5 million manats. Head of the project believes that reduction in the number of licenses and permissions will enable to save 5 million manats for the public budget.
The project is implemented jointly by BP and State Secretariat for Economic Affairs (Seco).
The 5-year program calls for reduction of obstacles for activities of businessmen, monitoring on business climate and raising insight of businessmen by educating them better.
The Azerbaijani government launched reforms regarding registration of businesses in compliance with the single window system in 2007-2008. License and permission granting system in the field of construction, protection of investors' rights is undergoing improvement. Amendments were also made to the Tax Code with this regard.
IFC is prepared to lend support to reforms concerning a number of administrative procedures and elimination of major regulatory obstacles for starting business. In particular, IFC will assist Azerbaijan in introduction of system of license and permission as soon as legislation is improved.
Seco granted $4.3 million and BP $0.456 million to Azerbaijani government in finance in an effort to improve business climate.
IFC assisted in amending and adopting 11 basic laws with the help business climate improving project in the CIS countries which enabled small and medium businesses to save $93 million.
On Jan. 8, the official exchange rate totalled 0.802 AZN/USD.
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