Oct. 24
Central Bank of Azerbaijan, IMF discuss global impact on country's economy
The Central Bank of Azerbaijan (CBA) and the International Monetary Fund (IMF) have discussed the potential impact of global economic processes on Azerbaijan. On Monday, CBA Chairman Elman Rustamov received the head of IMF mission in the country Nadeem Ilahi. The IMF mission is in Baku since Oct. 20. During the meeting, Rustamov spoke about the macroeconomic situation, the country's monetary and exchange rate policy for 2012, as well as measures to enhance the country's financial stability. The meeting also discussed the latest economic processes in the world, and their potential impact on Azerbaijan. Nadeem Ilahi touched upon the issues of economic growth, macroeconomic and financial stability in Azerbaijan, as well as the CBA's role in exchange rate and monetary policy.
Azerbaijani President receives Greek Minister for Environment, Energy and Climate Change
President of Azerbaijan Ilham Aliyev has today received the Greek delegation led by Minister of Environment, Energy and Climate Change George Papaconstantinou. George Papaconstantinou conveyed greetings of the Greek President to the Head of State. The Minister also handed over President Karolos Papoulias's letter to President Ilham Aliyev. During the meeting, they expressed satisfaction with development of bilateral relations between the two countries. They also stressed the importance of Greek President Karolos Papoulias's visit to Azerbaijan in terms of strengthening bilateral relationship. The parties underlined reciprocal visits at different levels help to expand cooperation between Azerbaijan and Greece. The Head of State asked Minister Papaconstantinou to pass on his greetings to the Greek leader.
Moody's Investors Service rates Azerbaijan's government debt
Moody's Investors Service International Rating Agency has rated Azerbaijan's government debt Ba1, the Agency said in its statement on Monday. "In line with our sovereign rating methodology, the country's modest per capita GDP, its undiversified economy and a still-evolving institutional framework translate into a low level of economic resiliency. However, given the country's large oil and gas reserves, Azerbaijan's medium-term economic growth potential is strong although lack of economic diversification could hinder growth in the long term if not addressed," the agency said. Financial robustness is ranked high, with government debt ratios expected to remain low in the medium term. Higher than expected oil prices during the course of 2010 have led to correspondingly larger current account, the statement said. Moody's Investors Service assigned a rating to Azerbaijan for the first time in 2006. In March 2011, Moody's revised its outlook on the sovereign rating of Azerbaijan "Ba 1" from "stable" to "positive", referring to the improvement in the sphere of finance of the country due to rising oil prices and the prudential management of revenues. Up to now, Azerbaijan was also assigned a rating of BBB by Fitch Ratings and BB+ by Standard & Poors.
President of Azerbaijan presided over Cabinet meeting
President of Azerbaijan Ilham Aliyev presided over a Cabinet meeting on Oct. 24 on the outcomes of the country's socio-economic development in nine months of 2011. The international financial institutions see great reforms carried out in Azerbaijan in economic and social spheres, rising credit ratings of Azerbaijan, he said. "At a time when the credit ratings of the developed countries are falling in the crisis years, the credit ratings of Azerbaijan rise. The influential world organization - the World Economic Forum in its next report on the countries' competitiveness, praised Azerbaijan's activities and honored it with the 55th place. The Azerbaijani economy occupies the first place in terms of the competitiveness, the country is a leader in the CIS," he said.
Oct. 25
ADB holds workshop on loan borrowing
Asian Development Bank (ADB) launched a workshop on ADB's ordinary capital resources (OCR) loan features, accounting, and servicing, the ADB said in its press release on Tuesday. Different from commercial banks, ADB has some unique loan accounting and servicing procedures and practices. The workshop will familiarize the borrowers about OCR for better loan administration. About 30 participants from the Ministry of Finance and executing agencies participate in the workshop. During the workshop, participants will also be trained on the use of the Enhanced Calculator for Loan Accounting and Servicing. The newly developed Loan Accounting and Servicing Website of ADB will be introduced to the workshop participants as well. During his introductory remarks, Olly Norojono, the ADB's Resident Representative, said: "This is the first time that ADB conducts loan accounting and servicing workshop for Azerbaijan borrowers and executing agencies. To respond to borrowers' demand for new loan products that can meet their needs to tailor loan terms, ADB has offered LIBOR-based loan (LBL) product since 2001 and enhanced loan terms continuously. We hope that the workshop will enable borrowers fully understand loan features when borrowing OCR loans from ADB for better managing the debt". The workshop ended on Oct. 27.
Fitch Ratings revises outlook on Azerbaijan Mortgage Fund
Fitch Ratings has revised the Outlook on the Azerbaijan Mortgage Fund under the Central Bank of Azerbaijan Republic (AMF) to Positive from Stable and affirmed its Long-term foreign currency and local currency ratings at 'BBB-', the Agency said. The rating action reflects the revision of Azerbaijan's Outlook ("Fitch Revised Azerbaijan's Outlook to Positive; Affirms at 'BBB-'" dated 17 May 2011) as well as Fitch's assessment of continuing robustness of the support framework in place for AMF from its sponsor (Central Bank of Azerbaijan Republic). AMF's ratings are equalised with the Azerbaijan sovereign rating, reflecting the entity's public sector status, its tight control by the sovereign through the central bank and its important role in the government's housing finance policy. "Provision of affordable housing is a high priority for the state," the Agency said. AMF's mortgage portfolio increased to 225.3 million manat as of late June from 193 million manat as of late 2010.
Azerbaijan will establish department on copyright protection in Internet
A special department to protect Internet copy will be established under the Azerbaijani Copyright Agency, department head Kamran Imanov told the press on Tuesday. Mr. Imanov said that the department will monitor its content, management and licensing. He went on: "The situation in the world indicates that the music file piracy rate is as much as 95 per cent. The piracy rate is 35 per cent in software even in Europe. The public thinks that the content transfer in electronic form will put the existence of copyright under question." He said that many countries have looked into this area using advice from the World Intellectual Property Organisation to try and find a solution. The project is being supported internationally and Azerbaijan's system chosen as an example. Mr. Imanov concluded.
Azerbaijani Copyright Agency calls on imposing tougher penalties for pirated products
The Azerbaijani Copyright Agency has launched an initiative to toughen the penalty for the production and distribution of pirated products. He said that the agency has put forward the proposals to change the relevant laws and regulations which will help fight against piracy. Mr. Imanov said: "Today, the main purpose is to form ideas and culture in the area of intellectual property." The agency's proposals mainly provide for economic sanctions making it disadvantageous to produce and distribute pirated products. Mr. Imanov added there is the positive trend to reducing piracy in Azerbaijan.
SOCAR to double its gas stations in Ukraine
By the end of this year, the number of gas stations of the State Oil Company of Azerbaijan (SOCAR) in Ukraine will hit 40. The spokesman went on to say the 15th gas station under the SOCAR brand will be opened in the Ukraine in a few days. The source said: "This station will also become the first in Ukraine's eastern region." According to the report, this new SOCAR Energy Ukraine outlet will be opened in the Kholodnovidka village. By 2025, the number of gas stations under SOCAR brand will hit 1000 in Ukraine. SOCAR also has gas stations in Georgia, Romania and Azerbaijan.
Azerbaijani gov't, WB sign water users association development support project
The Government of the Republic of Azerbaijan and the World Bank have signed credit, loan and project agreements for a $ 76.8 million equivalent IDA credit and a $ 3.2 million IBRD loan for the Azerbaijan Water Users Associations Development Support Project (WUAP). With US$ 34.3 million Government contribution the total financing of the project will be $ 114.3 million. The Agreements were signed by the Minister of Finance of Azerbaijan, Mr. Samir Sharifov, the Chairman of the Amelioration and Irrigation Open Joint Stock Company, Mr. Ahmad Ahmadzade and World Bank Country Manager for Azerbaijan ,Mr. Joseph Owen. The Project is expected to improve the productivity of 760,000 small-scale farmers located in 27 provinces of Azerbaijan thanks to the rehabilitation of the country's on-farm irrigation and drainage networks and capacity building activities being supported by new World Bank financing. With favourable climate and soils, Azerbaijan has significant potential to develop its agricultural sector which can become a key sector of non-oil economy and contribute to economic diversification and export growth. At the same time, most of the agricultural activity in the country depends on irrigation. Azerbaijan has an extensive irrigation network, but many irrigation systems need to be rehabilitated, especially the on-farm systems which are managed by water users themselves. Previous projects supported by the World Bank, helped water users with training to take over the management of irrigation systems, and with rehabilitation of the irrigation infrastructure. The new project, implemented by the Amelioration and Irrigation Open Joint Stock Company, will expand this support to a larger area and the majority of water users in the country. "This project will help tap the potential of Azerbaijan's agriculture," said Joseph Owen, World Bank Country Manager for Azerbaijan. "Rehabilitation of irrigation systems will support improvements in agriculture productivity and will create jobs and incomes for farmers and rural workers. This project will also strengthen the management of on-farm irrigation systems in the country." The WUAP focuses on strengthening the capacity of Water Users Associations (WUAs), which are responsible for the management of on-farm irrigation systems. The project will provide training and support to about 379 WUAs on almost 900,000 hectares, helping them to improve the water supply to their members. The project will also finance the rehabilitation of almost 3,000 km of irrigation and drainage canals and water regulation structures, benefitting around 85,500 ha and 34 WUAs.
President: Azerbaijan contributes to realizing South Corridor projects
Azerbaijan makes its contribution to implementing the South Corridor projects through realizing initiatives for the construction of gas pipelines and discovery of new gas fields, Azerbaijani President Ilham Aliyev said to at a press conference in Izmir. Aliyev said the successful cooperation with Turkey and signing an agreement with EU present Azerbaijan to world as a reliable and potential supplier of gas. "I hope that the implementation of agreements signed today with Turkey will further increase the export of Azerbaijani gas to Turkey and via the country to Europe," said Aliyev. The South Corridor is a priority EU energy project diversifying energy supply routes and sources and increasing EU energy security. The Southern Corridor includes the Nabucco gas pipeline, Trans Adriatic Pipeline (TAP), White Stream, and ITGI (Turkey-Greece-Italy pipeline). The South Corridor aims to directly link the European gas market with the largest gas fields in the world - the Caspian and Middle Eastern basin, with reserves estimated at 90.6 trillion cubic meters. The EU states that the strategic goal of South Corridor is to provide 10 to 20 percent of gas demand in the EU by 2020, equivalent to approximately 45-90 billion cubic meters of gas per year.
Oct. 26
Nabucco: transit agreement between Baku and Ankara - a step to export gas through Southern Corridor
Azerbaijan and Turkey signed a package of gas contracts, which includes issues of cost of Azerbaijani gas for Turkey in the second stage of Shah Deniz, volume of gas supplies to Turkey from the field after 2017, as well as a transit agreement for Azerbaijani gas transportation through Turkey. The gas produced during the second stage of Shah Deniz field develop ment is regarded as the main source for the 'Southern Gas Corridor' project. The Southern Corridor includes the Nabucco gas pipeline, Trans Adriatic Pipeline (TAP), and ITGI (Turkey-Greece-Italy pipeline).
Georgia, Azerbaijan work on customs legislation modernization
Georgia and Azerbaijan are working to modernize their customs legislations to simplify the process of goods trade and movement, Azerbaijani State Customs Committee Asgar Abdullayev official told media. Abdullayev participates in the conference on "Role of customs administrations to facilitate trade of the Silk Road countires", held in Batumi. "The simplification of customs procedures will not only facilitate trade between countries of the region," he said. "It will more quickly and effectively combat the supply of smuggled goods, as the level of coordination of our work will be much more effective." He stressed that the work over the legislation calls for to take into account the existing international standards. But they should not contradict each other. The Batumi forum will continue for three days.
Oct. 27 Azerbaijan calls for CIS to coordinate actions to combat economic crimes
The Coordinating Council of the Heads of the Tax Investigation Bodies of CIS Member States (CCTIB) is an important and effective inter-state cooperation body, Azerbaijani Deputy Tax Minister Namig Aliyev said in Baku. He added that its main task is to coordinate the activities of the competent authorities of the CIS countries in the sphere of economic security, in combating economic and tax crimes. "The role in ensuring the economic security of these bodies involved in the investigation and prevention of tax and financial crimes becomes more important for each country represented at today's meeting and various international organizations," Aliyev said. "The global nature of threats in modern conditions justifies appropriateness and relevance of comprehensive international cooperation, including the CIS."
Oct. 28 WB approved $50mln loan to improve IDP living conditions in Azerbaijan
The World Bank's Board of Directors today approved a $ 50 IBRD loan for the Azerbaijan IDP Living Conditions and Livelihoods Project. According to the press release, with the $ 28.5 million Government contribution, the total financing for the project is estimated at $ 78.5 million. "The goal of the project is to improve living conditions and increase the economic self-reliance of the beneficiary internally displaced persons. About 185,000 internally displaced persons (IDPs) in Azerbaijan will have better access to infrastructure, services, housing conditions and livelihood opportunities," the bank said. Objectives of the project will be achieved by a number of means. This will include investing in small infrastructure and services micro-projects which IDP communities identify as their priorities. An estimated 200 micro-projects will reach a beneficiary population of between 120,000 - 150,000 persons. The project will also help to improve housing conditions of about 30,000 persons. About 1,400 young people will receive vocational training and grants to start-up their own business. The loan is issued by the WB for 20 years with a grace period of five years. Since joining the World Bank in 1992, the commitments to Azerbaijan total approximately $ 2.9 billion for 43 projects.