Weekly economic review (June 20-24)

Analysis Materials 29 June 2016 11:26 (UTC +04:00)

Directions of economic reforms discussed in Azerbaijan

Economic reforms in Azerbaijan are aimed at the restoration of the country’s former prosperity, but at the expense of the non-oil sector, said Rufat Aslanli, head of the Board of Directors of Azerbaijan's Financial Market Supervisory Body.

He made the remarks during his speech at the 7th Azerbaijan International Insurance Forum (AIIF-2016).

Aslanli said the economic reforms mainly cover four directions.

“Firstly, we are working on the creation of a sustainable macroeconomic environment in the country,” he noted. “Today, manat’s rate and inflation are within the regulated economic framework.”

“Secondly, we are working to form an economic environment able to reduce transaction costs of business,” explained Aslanli adding that these measures are actively supported by the Azerbaijani government.

The third direction, he said, is to ensure wide access to investment and financial services.

“We have already determined the necessary events in this direction and have already begun their implementation,” added Aslanli. “It will cover the activities both in banking and financial sectors and in insurance sector.”

The fourth direction, according to the head of the Supervisory Body, is the creation of a flexible and effective legal reform.

According to the order dated March 16, 2016 of Azerbaijan’s President Ilham Aliyev, the preparation of the draft economic development strategy and the action plan for 2016-2020, the draft long-term review for the period until 2025 and the draft review of objectives for the period after 2025 will be considered until mid-September.

A working group, which is headed by the Azerbaijani president’s aide on economic reforms Natig Amirov, has been created to improve development plans in accordance with the “Main Directions of Strategic Roadmap on National Economy and Major Sectors of Economy”.