Last week review (July 18-22)

Analysis Materials 25 July 2016 16:11 (UTC +04:00)

July 18

Azerbaijani president attends see-off ceremony for athletes competing at Rio Olympics

An official ceremony was held to see-off the Azerbaijani athletes who will participate in the 31st Summer Olympic Games, to be held in Rio de Janeiro, Brazil.

President of the Republic of Azerbaijan, President of the National Olympic Committee Ilham Aliyev attended the ceremony.

July 19

Azerbaijan, Afghanistan mull creation of joint enterprises

Azerbaijan and Afghanistan discussed the creation of joint enterprises to produce food products, said Azerbaijani Economy Ministry in a message. The discussions were held during the meeting of Azerbaijan’s Economy Minister Shahin Mustafayev with Afghanistan’s Ambassador to Baku Mohammad Taqi Khalili. It was noted that there is great potential for cooperation in transportation, logistics, agriculture, trade and other fields between Afghanistan and Azerbaijan. The parties also exchanged views on construction of a cement plant in Afghanistan and the joint production of cotton.

Talks on Azerbaijan’s WTO accession start in Geneva

Another round of talks on Azerbaijan's accession to the World Trade Organization (WTO) started in Geneva, the Azerbaijani Foreign Ministry said. The Azerbaijani delegation is headed by Deputy Foreign Minister Mahmud Mammad-Guliyev.

July 20

Azerbaijan starts receiving investment projects for development of Garadagh district

National Fund for Entrepreneurship Support under Azerbaijan’s Economy Ministry has started to receive investment projects from entrepreneurs for priority areas of development of Baku’s Garadagh district. The meeting participants noted that it is expedient to receive proposals from business entities for financing investment projects on creating enterprises for meat cutting, production of plastic dishes, roofing and confectionery.

July 21

Azerbaijan Railways, Siemens to expand co-op

Azerbaijan Railways CJSC and the German Siemens company intend to expand cooperation, Nadir Azmammadov, spokesman for Azerbaijan Railways CJSC, said.

He said that the decision was made during the meeting between Javid Gurbanov, head of Azerbaijan Railways CJSC, and William Wilson, sales and commercial director at Siemens.

"The sides discussed the prospects for further strategic cooperation and made a decision on its expansion," Azmammadov added.

Angola interested in co-op with Azerbaijan’s SOCAR

Angola’s Sonangol Hidrocarbonetos İnternacional oil and gas company is interested in cooperation with the State Oil Company of Azerbaijan (SOCAR), said the message from SOCAR. The remarks were made during a meeting of SOCAR President Rovnag Abdullayev with the director general of Sonangol Hidrocarbonetos İnternacional Federico Domingos and deputy director general Filomena Oliveira in Baku.

July 22

Licenses of four banks cancelled in Azerbaijan

The licenses of DekaBank, KredoBank, Parabank and Zaminbank have been cancelled in Azerbaijan, head the Board of Directors of the country’s Financial Market Supervisory Body, Rufat Aslanli said during a press conference. The relevant decision was made by the Financial Market Supervisory Body.

“The licenses of those banks have been revoked, as their assets haven’t been classified in line with the law, they haven’t created adequate reserves and the aggregate capital of these banks doesn’t meet the minimum requirements [50 million manats],” said Aslanli. “In general, they haven’t fulfilled the regulator’s instructions.”

The purpose of closing down these banks is to reduce the risks in the banking sector, strengthen the financial stability, increase the confidence and ensure the development of the financial sector, he added.

July 23

Fitch downgrades inflation forecast for Azerbaijan

Fitch international ratings agency downgraded the forecast on inflation in Azerbaijan from 14 to 11.5 percent and from 7 to 6 percent in 2016 and 2017, respectively.

The agency’s forecast for growth of Azerbaijan’s GDP has remained unchanged at 1.5 percent for 2017, while the forecast for 2016 has been upgraded from -3.3 to -3 percent.

The agency has also raised the forecast on GDP per capita, which was forecasted at $3,707 for 2016 and $4,297 for 2017. But the latest Fitch forecast shows that GDP per capita is expected at $3,813 and $4,434 in 2016 and 2017. Fitch analysts believe that at the end of 2016, the current account surplus will amount to 3.8 percent of GDP, to 9.3 percent of GDP in 2017. Moreover, Fitch has approved the long-term issuer default rating (IDR) of Azerbaijan at “BB+” with the forecast “negative”, and forecasted the short-term IDR both in foreign and local currencies at “B”.