BSTDB President: Azerbaijan has substantial buffers to mitigate COVID-19 impact on economy

BSTDB President: Azerbaijan has substantial buffers to mitigate COVID-19 impact on economy

BAKU, Azerbaijan, May 25

By Leman Zeynalova - Trend:

Azerbaijan has substantial buffers to mitigate COVID-19 impact on economy, the Black Sea Trade and Development (BSTDB), BSTDB President Dmitry Pankin told Trend.

"Azerbaijan is facing an additional challenge in the form of the fall in the oil prices. Given the share of the oil and gas sector in the economy, falling oil prices naturally impact Azerbaijan negatively, as the external trade balance and consolidated fiscal balances are hurt. However, foreign exchange reserves accumulated over the previous years to the tune of 100 percent of GDP must help to ease pressures from these factors. For example, in case oil prices remain low and/or pandemic lasts longer, Azerbaijan might face consolidated budget deficit both due to the oil price and to weak economic activity. At the same time, unlike most countries of the region, Azerbaijan can finance these deficits with the accumulated reserves, rather than resort to debt instruments. So, Azerbaijan has substantial buffers that it can use in case of need. Still, we believe that rather than to exhaust the reserves, Azerbaijan will likely adjust its economic policy and adapt necessary measures, so that the reserves are saved for the long period ahead, which is the purpose of the Oil Fund," he said.

Pankin went on to add that most countries are doing what needs to be done .

"Given that lives of people are at stake and public health priorities determining economic policies, there are too many uncertainties to be able to say what to do and when to do it. From the economic perspective, it is necessary to provide support and devise mechanisms so that enterprises remain afloat and are able to start operations as soon as restrictions are lifted. Azerbaijan has done a lot in that direction. Measures have been taken to support people in need with cash payments, tax reliefs incentivized companies not to fire employees, etc.," he said.

To sum up, first, policies should be in place to protect public health and, second, emergency measures should be implemented to help people, enterprises, and all economic agents to overcome the pandemic and to restart their activities, noted the BSTDB President.

The Black Sea Trade and Development Bank (BSTDB), an international financial institution with headquarters in Thessaloniki, Greece, was established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine.

---

Follow the author on Twitter:@Lyaman_Zeyn

Subscribe to Trend in Google News! Subscribe
Russian company may set up 'smart' bus stops in Azerbaijan's liberated lands
Russian company may set up 'smart' bus stops in Azerbaijan's liberated lands
Georgia shares data on its top goods exported to Russia
Georgia shares data on its top goods exported to Russia
Iran records increase in exports to Uzbekistan
Iran records increase in exports to Uzbekistan
Loading Bars
Latest
Russia, China are friends in each other’s interests, not against others — Putin
Chronicles of Victory: First VP Mehriban Aliyeva interviewed by Trend News Agency on October 22, 2020
Chronicles of Victory: October 22, 2020
French PM pledges cash to help drivers cope with rising energy prices
Qarabag FC wins another victory within Conference League
Putin makes statement on Karabakh
Uzbek Central Bank: Food prices have risen by 14.4%
Georgian Parliament Speaker to meet Moldovan counterpart in Greece
Brussels' utopian green energy fantasies spark energy crisis in Europe — Hungarian PM
EU prioritizes digital sector development in Azerbaijan
Russia planning several new business visits to Azerbaijan by year-end - official
Russian company to implement micro-mobile transport project in Baku
First Vice-President Mehriban Aliyeva makes Instagram post on visit to Zangilan (VIDEO)
Azerbaijan Investment Holding, Kazakhstan National Welfare Fund sign memorandum of co-op
SOFAZ’s revenues from profitable oil and gas sale up
Executive Power of Azerbaijan’s Tovuz district opens tender for road repairs
Kazakhstan, Russia discuss gas supply issues
Russian company may set up 'smart' bus stops in Azerbaijan's liberated lands
Azerbaijan publishes updated list of servicemen martyred during second Karabakh war
IBF VP talks growing interest of investors in Azerbaijan's liberated lands (VIDEO)
SOFAZ sees increase in budget revenues
Uzbekistan's GDP growth in 9M2021 sparks promising forecast
Azerbaijan developing preliminary conceptual design of railway route to liberated Kalbajar (PHOTO)
Goldman Sachs, Freshfields working on possible Porsche IPO
Kazakhstan to liquidate emergency wells in several regions
Large-amount loans issued in Iran's services sector
Azerbaijan, Russia talk cooperation opportunities in insurance sector
Azerbaijan records surplus in state budget
Azerbaijan's Sumgayit Technologies Park, Alat FEZ sign MoU on strategic co-op
Azerbaijan shares data on number of vaccinated citizens
Head of EU delegation talks financial aid to Azerbaijan, following end of Karabakh war
U.S. weekly jobless claims drop to 19-month low
Uzbek Central Bank publishes data on country's gold, currency reserves
Trade turnover between Turkmenistan, Uzbekistan grows sharply
FIMI buys Ashot Ashkelon stake from Elbit Systems for $88m
Azerbaijan confirms 2,005 more COVID-19 cases, 1,011 recoveries
Uzbek Central Bank reveals data on total liabilities of banks
Iran sees decrease in load/unload operations in Astara port
Kremlin hopes for EU certification of Russia's vaccine
Bahar Azadi gold coin price begins to rise in Iran
India enters 100-crore vaccine club to fight Covid, PM Modi says nation scripts history
Hungarian University Forum and alumni meeting in Baku
Central Bank of Iran shares data on loans issued for trade sector
Turkmenistan doubles greenhouse tomato exports to Russia
Turkey's position on opening Zangezur corridor - unchanged – President Erdogan
Iran reveals COVID-19 data for October 21
Georgia shares data on its top goods exported to Russia
Iran sees increase of cargo loading/unloading at its Charak port
Turkish President to attend opening of Azerbaijan’s Fuzuli International Airport
India offered humanitarian assistance to Afghans, Taliban say after 2nd meeting
'Turkic World' project aims to meet information demand - Turkish official
South Pars field revenues account for over half of Iran's state budget
Turkmenistan looks to launch new project jointly with UNDP, WB
Central Bank of Iran announces amount of loans issued in housing, construction sector
Turkmenistan interested in political stability, security in Afghanistan – Deputy FM
Iran’s CBI reveals amount of loans issued for industrial and mining sectors
India achieves the major milestone of ‘one billion’ vaccinations
Volume of loaded/unloaded cargo in Iran’s Fereidoonkenar port down
Ruling parties of Azerbaijan, Turkey to hold meeting
Iran records increase in exports to Uzbekistan
Iranian president to visit Ardabil Province on border with Azerbaijan
Uzbekistan reveals total assets for banks with/without state share
Every martyr will live forever in hearts of Azerbaijani people - President Ilham Aliyev
SOCAR discloses oil transportation volume via Baku-Supsa
Our people did not bow down during occupation, did not forget about their native lands - Azerbaijani president
Georgia-Russia trade turnover increases in 9M2021
Azerbaijan's military units in Kalbajar, Lachin undergo inspection amid coming winter (PHOTO/VIDEO)
Georgia shares data on COVID-19 cases for October 21
SOCAR’s capital investment plan fulfilled by over 63%
SOCAR reveals volume of electricity production, consumption
Iranian currency rates for October 21
Tesla's German plant hits snag as public consultation repeated
Iranian startup companies receive more loans from local banks
Activities in Iran’s Genaveh port increase
Egypt economy forecast to grow 5.1% in year to June, 5.5% in 2022/23
Pfizer vaccine very effective against Delta variant in adolescents in Israel
Iranians detained in Azerbaijan due to falsified of customs documents sent back to Iran
Exports of Iran to Tajikistan soar
Iran begins new round of power plant overhaul operations
Zangilan will become transport and logistical center of our country - President Aliyev
SOCAR fulfills oil refining plan by over 103%
Gas could lose market share to coal this winter
Russia sees record high of 36,339 daily COVID-19 cases, crisis center says
Does Europe have enough gas stocks to get through winter?
Azerbaijan considering proposals for building new modern gas-turbine power plant
Azerbaijan announces time of commissioning floating solar power plant
Azerbaijan to develop atlas of renewable energy potential
Kazakhstan eyes attracting investments in processing industry
Turkey shares data on number of cars transshipped via local ports in 9M2021
Iran to use alternative fuel for power plants
Iran shares data on grain imports from Russia
Azerbaijan updates on renewable energy projects with ACWA Power, Masdar
Iran looking to expand export to neighboring countries - President Raisi
Amount of loans issued by Iranian banks continue to grow
Iran provides several loans in agricultural sector
Oil mixed, but solid U.S. demand underpins sentiment
1 dead, 33 injured in restaurant explosion in northeast China
Iran, Kazakhstan urged to set out a new framework for bilateral ties
Number of beneficiaries receiving subsistence allowance increases in Georgia
ADB to prioritize Uzbekistan’s transformation to market-based economy through reforms (Exclusive)
All news