FAO to help Azerbaijan improve forest management
The UN Food and Agriculture Organization (FAO) will continue supporting the development of forest resources in Azerbaijan, Melek Cakmak, head of the FAO Partnership and Liaison Office in Azerbaijan, told Trend.
She said that the FAO together with the Global Environment Facility (GEF) and the government of Azerbaijan have launched a project to assess the monitoring of the country's forest resources.
"The project will make it possible to carry out inventory of Azerbaijan's forest resources," she said. "Such a process was last carried out in 1988. It is also planned to strengthen the human resources and technical potential of Azerbaijan's Ministry of Ecology and Natural Resources as part of the project."
She noted that the inventory will allow Azerbaijan to form forest resources policy, and also to implement projects in this field more successfully.
"As part of the project, it is also planned to restore damaged forests in the Gakh and Aghdam districts of Azerbaijan and plant new trees," she said. "This will make it possible to protect the land, as well as reduce emissions of carbon dioxide."
Cakmak stressed that the joint work with the population is the most important component of the project.
"We need to attract the population to this work," she said. "In addition, as part of the program, we plan to support the planting of seedlings. In this sphere alone, we plan to provide jobs for more than 50 people."
She noted that when planting seedlings, special attention will be paid to growing fruit tree seedlings.
Cakmak said that the project will be mainly financed by the GEF, while the FAO and the Azerbaijani government will provide non-material support to the project.
"The GEF allocated $1.5 million for this project, while the support of the FAO and the Azerbaijani government (provision of labor force and other resources) can be estimated at $1 million and $2-3 million, respectively," said Cakmak.
Azerbaijan has been a member of the FAO since 1995. The organization's office in the country has been operating since 2007.
IFC reveals goals of supporting investment reforms in Azerbaijan
The International Finance Corporation (IFC), just like the World Bank (WB) Group in general, will continue to support reforms in Azerbaijan in order to attract foreign direct investments (FDI) to the non-oil sector of the country, Jan van Bilsen, IFC regional manager for the South Caucasus, said in an interview with Trend and Azernews.
"For many years, IFC's investments have been complemented by a range of advisory projects aiming to support private sector growth," he said. "These projects have supported investment climate reforms, helped build capacity within the banking sector in various areas, including on-lending to MSMEs, supported the development of financial market infrastructure and promoted good corporate governance. In response to increased government efforts to improve the business-enabling environment and make the country more attractive for FDI in the non-oil sector, IFC and the WB Group aim to continue supporting investment climate reforms."
He said that the IFC is also committed to supporting the government in structuring pilot public-private partnership projects (PPP).
"We can help attract private investment through PPP transaction advisory support, as well as structure pre- and post-privatization investments, offering our vast global experience in structuring PPP projects in various sectors," he noted.
"It is also important to continue reforms aimed at improving trade and the investment climate to better integrate Azerbaijan into global value chains," he said. "This includes creating a level playing field for all investors, simplifying the regulatory framework, and deepening tax, judicial and financial sector reforms."
Azerbaijan became an IFC member in 1995. Since the beginning of cooperation, the IFC has allocated $473 million for projects in Azerbaijan that cover financial services, infrastructure and production.
Another industrial zone to start operating in Azerbaijan
The first stage of creation of the Sabirabad industrial zone in Azerbaijan will end in July this year, the country's Deputy Economy Minister Niyazi Safarov said at a meeting with entrepreneurs.
He said that the industrial zone will be commissioned once the first stage is completed.
Safarov noted that all necessary infrastructure of the Sabirabad industrial zone is being created by the Azerbaijani state. In accordance with the economic potential of the Sabirabad district, facilities for refining and procurement of cotton, production of plastic and building materials, processing of agricultural products and a logistics center will be created in the industrial zone, he added.
During the meeting, the deputy economy minister also stressed importance of the events held under the leadership of Azerbaijani President Ilham Aliyev to diversify the economy, develop industry and increase its competitiveness, strengthen the state support for entrepreneurship and constantly improve business and investment environment.
In turn, Rovshan Najaf, executive director of the Azerbaijan Investment Company, noted that three production sites with an area of 7,605 square meters, an office building with an area of 1,060 square meters, as well as technical and auxiliary buildings will be commissioned as part of the first stage of creation of the Sabirabad industrial zone in Azerbaijan.
Meanwhile, Head of Sabirabad District Executive Authority Nazim Ismayilov spoke about the attention and care the Azerbaijani president pays to the development of districts. He noted the importance of the industrial zone for the development of the Sabirabad district as a whole, especially for small and medium-sized enterprises and for the employment of the population.
Presently, there are five industrial parks (the Sumgait Chemical Industrial Park, industrial parks in Garadagh, Balakhany, Mingachevir and Pirallakhi settlements), as well as Neftchala, Hajigabul and Masalli industrial zones, in Azerbaijan.
A number of agricultural and high technology parks also operate in Azerbaijan.
Azerbaijan may change requirements for adequacy of banks' capital
Negotiations are underway in Azerbaijan to change the requirements for the adequacy of banks' capital, Zakir Nuriyev, head of the Azerbaijan Banks Association, told reporters in Baku Feb. 9.
He said that the Association has already submitted its proposals to the Financial Market Supervisory Authority of Azerbaijan, and the regulator will make the final decision.
Nuriyev noted that the changes envisage increasing the capital adequacy ratio.
Presently, the banks' capital adequacy ratio must be three percent, according to the requirements of the Financial Market Supervisory Authority of Azerbaijan.
Azerbaijani bank plans rebranding
Azerbaijan's Rabitabank plans rebranding, Zakir Nuriyev, chairman of the Supervisory Board of the bank, told reporters in Baku Feb. 9.
He said that the bank's rebranding will be implemented during 2018-2019.
He also noted that the bank will continue increasing its authorized capital.
"The capital will be raised at the expense of the bank's existing shareholders," Nuriyev said.
The authorized capital of Rabitabank amounted to 88.5 million manats in 2017.
Rabitabank has been operating in Azerbaijan since 1993.
“Credit bureau’s creation to enhance Azerbaijani population’s financial responsibility”
Creation of a credit bureau will significantly improve financial responsibility of the Azerbaijani population, Deputy Chief Executive Director and Director of the Strategic Services Department of the Financial Market Supervisory Authority of Azerbaijan Asim Zulfugarov said Feb. 9.
He made the remarks at a press conference on the launch of the first private credit bureau in Azerbaijan.
He said that this step will allow both creditors and borrowers to promptly and fully receive information on the borrowed loans and analyze the need for getting a new loan.
"Despite that the Centralized Credit Registry has been operating in Azerbaijan for 13 years, the country needs a complete system of credit histories that is more efficient and operational," Zulfugarov said. "Therefore, creation of the first private credit bureau is a very important step, which will significantly strengthen financial literacy in Azerbaijan."
In December last year, Azerbaijani banking market participants made a decision to create Azerbaijan Credit Bureau LLC. Chairman of the Board of the International Bank of Azerbaijan Khalid Ahadov was elected Chairman of the Supervisory Board of the Azerbaijan Credit Bureau.
The founders of the Azerbaijan Credit Bureau LLC are the International Bank of Azerbaijan, Bank Respublika, Xalq Bank, Kapital Bank, PASHA Bank, Rabitabank, Unibank and Ziraat Bank Azerbaijan.
The private credit bureau will contain more information than the Centralized Credit Registry and cover a bigger number of borrowers. The bureau will receive information not only from banks, but also from insurance and leasing companies, mobile communication operators, etc.
More private credit bureaus may appear in Azerbaijan
Any legal entity or individual has the right to establish a private credit bureau in Azerbaijan, considering compliance with the country's legislation, Zakir Nuriyev, head of the Azerbaijan Banks Association, said Feb. 9 at a press conference on the launch of the first private credit bureau in Azerbaijan.
He said that the current legislation in Azerbaijan doesn't limit the number of private credit bureaus in the country and their number may increase in the future.
Private credit bureau is a commercial organization and it renders services on the basis of a signed contract, he added.
The charter capital of credit bureaus in Azerbaijan must be at least two million manats.
In December last year, Azerbaijani banking market participants made a decision to create Azerbaijan Credit Bureau LLC. Chairman of the Board of the International Bank of Azerbaijan Khalid Ahadov was elected Chairman of the Supervisory Board of the Azerbaijan Credit Bureau.
The founders of the Azerbaijan Credit Bureau LLC are the International Bank of Azerbaijan, Bank Respublika, Xalq Bank, Kapital Bank, PASHA Bank, Rabitabank, Unibank and Ziraat Bank Azerbaijan.
The private credit bureau will contain more information than the Centralized Credit Registry and cover a bigger number of borrowers. The bureau will receive information not only from banks, but also from insurance and leasing companies, mobile communication operators, etc.
Azerbaijan discloses inflation rate in January
Prices for consumer goods and tariffs for services in Azerbaijan increased by 5.5 percent in January 2018 as compared to January 2017, the State Statistics Committee said Feb. 9.
The prices for food products increased by 6.9 percent, prices for non-food items - by 5.1 percent and the cost of paid services - by 3.9 percent during the reporting period.
The prices for food products increased by 0.5 percent, prices for non-food items - by 0.2 percent and the cost of paid services - by 0.8 percent in January 2018 compared to December 2017.
The inflation rate was 12.9 percent in 2017.