Last week review (May 27-31)
WUN, WB note Azerbaijan's significant progress in achieving Millennium Development Goals
Azerbaijan has made significant progress in achieving the Millennium Development Goals adopted by the UN member countries and all leading development organisations in the world, UN resident coordinator in Azerbaijan Antonius Broek and head of the Baku Office of the World Bank (WB) Larisa Leshchenko stated at a seminar entitled 'The goals of sustainable development - national consultations in Azerbaijan'.
The eight development objectives stated in the Millennium Development Goals, starting with the reduction of extreme poverty to halt the spread of HIV / AIDS and providing universal primary education by 2015, constitute a programme adopted by all countries and leading development organisations of the world. According to Leshenko, Azerbaijan has made progress in the area of poverty reduction, primary education and the fight against HIV infection, but in order to achieve all the Millennium goals, Azerbaijan should pay great attention to the opening of new jobs, regional development and inclusive growth of the economy.
World Bank agricultural subsidy proposals
The World Bank (WB) presented the Azerbaijani government with its proposals to improving the country's mechanism of subsidising agricultural producers, head of the Baku office of the World Bank Larisa Leshchenko said. According to her, the bank conducted an analysis in the field of subsidising agricultural producers and then presented its proposals to the Azerbaijani government. "Right now we are not cooperating in this field, but if necessary we are ready to provide support. Our main proposal is to ensure the effectiveness of subsidies, regardless of their form," Leshchenko said. As the Minister of Agriculture Ismet Abbasov said previously, various proposals to change the mechanism of subsidising farmers is being discussed in the country.
International Bank of Azerbaijan completes major deal with Arab banks
The UAE banks have been mandated by the International Bank of Azerbaijan (IBA or the Purchaser) to arrange a $100,000,000 Syndicated Murabaha Financing facility, a joint press-release released by the banks says. "Emirates NBD Capital Limited (EMCAP), Barwa Bank, J.P. Morgan Limited (J.P. Morgan) and Noor Islamic Bank PJSC (Noor) (the Initial Mandated Lead Arrangers and Bookrunners) have been mandated by the International Bank of Azerbaijan (IBA or the Purchaser) to arrange a $100,000,000 Syndicated Murabaha Financing facility", according to the press-release. Financing under the Facility will be used by IBA to expand its Shari'a compliant financing activities in Azerbaijan. The Facility has a tenor of 18 months and carries a profit rate of 325 bppa over the relevant Libor. IBA operates an Islamic window that provides Shari'a compliant financial services in Azerbaijan.
President Aliyev: Modern technologies will help to diversify Azerbaijani economy
Azerbaijan invests largely in the new technologies, in non-oil sector of economy, and the results of these four months of 2013 show an economic growth in non-oil sector close to 11 percent, President of Azerbaijan Ilham Aliyev said. He made this statement at the opening of the Azerbaijan-U.S. Convention "Vision for the Future" in Baku. "And this shows that already we have achieved largely our objective, that is, diversification of economy. And the new sectors of economy which we now try to develop and also demand modern technologies, knowledge, as it was in mid 1990's, when we needed modern technologies to develop our oil fields. Because in the Soviet times, Azerbaijani oil workers could not drill in more than 100-150 meters depths of the water. And modern technologies in energy sector allowed us to discover new fields," President Aliyev said.
Azerbaijan is interested in expanded cooperation with Western Kazakhstan
Azerbaijan is interested in cooperation with Western Kazakhstan, Azerbaijani Deputy Minister of Economic Development Niyazi Safarov said at a joint business forum in Baku. A delegation headed by Atyrau oblast governor Serik Aidarbekov arrived in Baku. It includes representatives of companies operating in the fields of agriculture, food processing, medicine, shipping and energy. "The two countries have established a solid legal basis," Safarov said. "Nine meetings of the intergovernmental commission on trade and economic cooperation have been held up to now. Today, about 40 companies with Kazakh capital work in Azerbaijan. Azerbaijani businessmen are working successfully in Kazakhstan." He said that the agroindustrial complex, food industry and establishment of joint ventures in different areas of the economy look like the most profitable areas to invest in.
Moody's improves outlook on ratings of largest bank of Azerbaijan
Moody's Investors Service has changed to stable from "negative" the outlook on the following global scale ratings of International Bank of Azerbaijan (IBA), said in report published on website of agency. The bank's standalone bank financial strength rating (BFSR) of E+, which is equivalent to a standalone baseline credit assessment (BCA) of b3, long-term local and foreign currency deposit ratings of Ba3, long-term foreign currency senior unsecured debt rating of Ba3, and long-term foreign currency subordinated debt rating of B1.
EU strongly supports Azerbaijani bid to join WTO
The European Union (EU) strongly supports the efforts of Azerbaijan to join the World Trade Organization (WTO), the head of the EU Delegation to Azerbaijan Roland Kobia said speaking at the conference "International Trade Law in the Caucasus and Central Asia: between regional integration and globalization" held in Baku. According to him, accession into the WTO is not a challenge, but an opportunity for Azerbaijan. We understand that Azerbaijan should continue to protect the local market. We are aware that Azerbaijan's accession into the WTO will bring the country more expenditures rather than benefits. This means that local producers will be required to meet the WTO standards. We believe the country will join the WTO in the foreseeable future not because we want to believe it, but because we assume it is in the interests of Azerbaijan", he added.
EBRD: Favorable conditions for investment created in Azerbaijan's stock market
Favorable conditions for investment have been created in the securities market of Azerbaijan, the Vice President for Financial Affairs of the European Bank for Reconstruction and Development (EBRD), Manfred Schepers said during the meeting with the Deputy Chairman of the State Securities Committee (SSC) of Azerbaijan Ilgar Muradov in Baku. According to the report published on the website of the State Committee, the meeting discussed expansion of cooperation, which, according to the deputy chairman of the State Committee for Securities, will create new opportunities in the domestic securities market.