Central Bank of Azerbaijan may revise discount rate
The Central Bank of Azerbaijan (CBA) plans to discuss the issue of revising the discount rate in mid-June 2017, Elman Rustamov, chairman of the CBA, told reporters in Baku.
“The monitoring of market prices in Azerbaijan held in May 2017 showed that inflation continues to decline,” Rustamov said. “In this situation, the issue of revising and mitigating the discount rate becomes topical.”
He noted that the situation with the consumer price index improved in the country.
“Inflation for four months of 2017 was lower than during the four months of last year,” the CBA head added.
The CBA last revised its discount rate in September 2016 and increased it to 15 percent. After that, the CBA twice during 2017 kept the discount rate unchanged.
Azerbaijan to introduce new mechanism for managing state funds
A new electronic mechanism for the transparent management of state funds and their efficient distribution will be introduced in Azerbaijan in the next two years.
This is reflected in the action plan approved by President of Azerbaijan Ilham Aliyev for increasing favorability of the business environment in the country.
Under the plan, annual reports on receipt and expenditure of state funds will be discussed by independent international and local experts, civil society and inspection bodies. Foreign experts alongside local ones will be invited to audit the state budget.
Meanwhile, the plan says Azerbaijan’s government will continue the state budget consolidation in 2017.
Revenues of Azerbaijan’s 2017 state budget were approved at 16.255 billion manats and expenses at 16.9 billion manats. Budget projections are based on the oil price of $40 per barrel. The Azerbaijani government expects the state budget deficit to be at the level of 645 million manats in 2017.
The International Monetary Fund forecast Azerbaijan’s GDP to be 59.7 billion manats in 2017.