President Ilham Aliyev attends D-8 Summit in Istanbul

The 9th Summit of the D-8 Organization for Economic Cooperation kicked off in Istanbul under the motto “Expanding Opportunities Through Cooperation”.

President of Azerbaijan Ilham Aliyev is attending the Summit as a special guest at the invitation of President of Turkey Recep Tayyip Erdogan.

Prior to the Summit a joint photo was taken.

The Summit started with the recitation of ayahs from Holy Quran.

Afterwards, Secretary General of the D-8 Organization Seyed Ali Mohammad Mousavi and the organization’s chairman, Interim Prime Minister of Pakistan Shahid Khaqan Abbasi delivered speeches.

Abbasi announced that the organization’s chairmanship is passing from Pakistan to Turkey.

Then, the new chairman of the organization, Turkey’s President Recep Tayyip Erdogan addressed the event.

President of Azerbaijan Ilham Aliyev delivered a speech at the 9th Summit of the D-8 Organization.

Turkish President Recep Tayyip Erdogan made a closing speech at the Summit.

Afterwards, a Memorandum of Understanding was signed between the D-8 Organization and the Islamic Development Bank (IDB) with the participation of President of Turkey Recep Tayyip Erdogan, President of Azerbaijan Ilham Aliyev and heads of state and government of other countries.

Azerbaijani government announces forecasts for exports in 2018

Revenues of the state budget of Azerbaijan for 2018 are forecast at 20.127 billion manats, including centralized incomes worth 19.476 billion manats and local incomes worth 650.671 million manats.

Meawhile, expenditures are forecast in the amount of 20.905 billion manats, including centralized expenses worth 20.182 billion manats, and local expenses – 724.092 million manats.

The draft law “On the state budget for 2018” was published on Oct. 20.

The maximum deficit of the state budget was determined at the level of 778.7 million manats.

The following sources of financing were identified in order to cover the deficit of the state budget: as of January 1, 2018, internal and external loans and balance on a single treasury account totaling 749.7 million manats, grants of the European Union – 29 million manats.

The upper limit of expenses of the consolidated budget is forecast in the amount of 26.674 billion manats, while the deficit of the consolidated budget (excluding the revenues of the State Oil Fund – SOFAZ) is expected to total 14.127 bililon manats.

About 9.216 billion manats out of revenues of the state budget account for SOFAZ transfers. Revenues from the value added tax (VAT) are forecast in the amount of 4.288 billion manats (including 1.705 billion manats on VAT from imported goods), revenues from income tax – 2.320 billion manats, revenues from individual income tax – 1.196 billion manats, revenues from excise tax – 726 million manats (including 172 million manats from excise tax on goods import), revenues from customs revenues – 535 million manats, revenues from simplified tax – 380 million manats, revenues from subsoil use tax – 136 million manats, revenues from highway use tax – 91 million manats.

Non-budgetary revenues of budget organizations are forecast at 460 million manats. Other revenues are expected to total 27.991 million manats.

In the structure of expenditures of 2018, it is planned to allocate 2.739 billion manats for defense, two billion manats – for education, 740.661 million manats for healthcare, 2.197 billion manats – for social protection and social security (including 2.163 billion manats for social protection), state capital investments – 4.924 billion manats and others.

Budget forecasts are formed on the basis of oil prices at $45 per barrel.

Revenues of Azerbaijan’s state budget have been approved in the amount of 16.766 billion manats, expenses – 17.941 billion manats for 2017.

Azerbaijan cuts annual limit for issuing state guarantees for 2018

The government of Azerbaijan has set a maximum limit for the provision of state guarantees in the amount of 4 billion manats in the 2018-state budget.

The bill "On the State Budget for 2018" was published in the official press.

This indicator was first introduced in 2017 and determined at the level of 10 billion manats.

Under the bill, about 2, 263 billion manats will be issued for the management of the state debt in 2018, which is less by 621 million manats (37.8 percent) compared to the figure in 2017.

Moreover, 103.18 million manats will be directed to fulfill obligations on domestic public debt, including 80.17 million manats for interest payments and 23.007 million manats - the main debt. To cover the external debt in 2018, it is planned to direct 2.159 billion manats, including 533.59 million manats for interest payments and 1.626 billion manats - the main debt.

The upper limit of domestic public debt for 2018 is projected in the amount of 700 million manats and external public debt - one billion manats.

As of July 1, 2017, Azerbaijan's external public debt exceeded $7,172 billion (12,209 billion manats), which is 18.9 percent of the country's GDP.

The Finance Ministry reports that the statistics on borrowing includes direct government obligations and contingent liabilities for the loans attracted under the state guarantee.

The external public debt id made up mainly of credit programs and infrastructure projects of international financial institutions, as well as securities placed on international financial markets.

The country's external debt was $ 7 billion (18.1 percent of GDP) as of April 1, 2017.

Baku Stock Exchange ready to hold IPO

The Baku Stock Exchange (BSE) is ready to hold an initial public offering (IPO), said Chairman of BSE Management Board Vugar Namazov.

He made the remarks at a conference, titled “Capital Markets of Azerbaijan: Opportunities and Prospects”, in Baku.

Namazov said that traditional financing instruments can no longer fully function and, if before the BSE had to explain to companies the need to enter the stock market, now the companies themselves have begun to actively seek ways to attract investors.

“Currently, capital markets have become a necessity,” he added.

“Thanks to the work done last year, we were able to successfully place the bonds worth $100 million of [Azerbaijan’s state oil company] SOCAR,” noted Namazov.

He went on to say that today the BSE operates as a modern platform of trading and post-trading service Centralized Trading Exchange system (CETA), which allows conducting about 25,000 transactions in a quarter of a second.