Weekly economic review (Feb. 26-March 2)

Apple Pay, Google Pay payment services to appear in Azerbaijan

Apple Pay and Google Pay payment services will appear in Azerbaijan, Zaur Gardashov, head of Azexport portal, told Trend.

He said that there are certain legal barriers that don't allow these payment systems to fully operate in Azerbaijan.

"Our legislation is built on the basis of classical card systems, while special digital codes, tokens, are used in payments via Apple Pay and Google Pay," Gardashov said. "It is necessary to define the concept of tokens in the legislation in order to eliminate existing technical barriers and to make it possible for these payment systems to come to Azerbaijan. Maybe it will take one month and maybe six months."

Apple Pay is a mobile payments service that allows users to make payments in person, in iOS apps, and on the web. It digitizes and can replace a credit or debit card chip and PIN or magnetic stripe transaction at a contactless-capable point-of-sale terminal. It is very similar to contactless payments already used in many countries, with the addition of two-factor authentication via Touch ID, Face ID, PIN or passcode.

The service lets Apple devices wirelessly communicate with point of sale systems by using a near field communication (NFC) antenna, a "dedicated chip that stores encrypted payment information" (known as the Secure Element), and Apple's Touch ID and Wallet.

Google Pay (formerly Pay with Google) is a payment system launched by Google in 2017 as a payment method for online shopping. It took over the branding of Google Chrome's autofill feature. Google Pay would have all the features of Android Pay, and would include Google Wallet features such as requesting and sending money.

Ilham Aliyev increases salaries of employees of educational institutions

Azerbaijan's President Ilham Aliyev signed an order Feb. 28 to increase the salaries of employees of educational institutions.

According to the order, monthly salaries of employees working in educational institutions (excluding higher educational institutions), financed through the state budget, will be increased by 10 percent from March 1, 2018 to further strengthen the social protection of employees of educational institutions and state care for them.

Creditor committees to be created in liquidated Azerbaijani banks

The Azerbaijan Deposit Insurance Fund (ADIF) has applied to the court to create creditor committees in most liquidated banks, ADIF Deputy Chairman Vugar Abdullayev said.

He made the remarks at a meeting of the creditors' committee of Bank Standard JSC.

Abdullayev said creditor committees will be created in all liquidated banks in the near future, in particular, in Demirbank OJSC.

Creditor committees have been created in Bank Standard, AtaBank, Kredobank, Caucasus Development Bank and GanjaBank so far.

Currently, ADIF is engaged in liquidation of 12 banks.

One more bank may appear in Azerbaijan

TBC Kredit, a non-banking credit organization (NBCO), doesn't exclude the possibility of applying for a banking license in Azerbaijan in the long term, TBC Kredit Director Nukri Tetrashvili said in an exclusive interview with Trend.

A parent bank of the TBC Kredit, the TBC Bank, which operates in Georgia, is very interested in the Azerbaijani market, Tetrashvili said.

Azerbaijan and Georgia are neighbors and strategic partners, he noted, adding that the TBC Kredit always tried to comply with banking regulatory requirements in Azerbaijan.

For example, NBCOs are not required to create reserves when issuing loans, but the TBC Kredit still creates reserves for internal reporting, he said.

The TBC Bank's shares are quoted on the London Stock Exchange, that's why the TBC Bank always had very strict requirements for audit, financial reporting and other issues related to the TBC Kredit's activity, Tetrashvili said.

Azerbaijani banks may get tax privileges

The Azerbaijan Banks Association (ABA) intends to discuss the introduction of tax privileges for the banking sector with entrepreneurs and representatives of state organizations, ABA chairman Zakir Nuriyev told Trend March 1.

"We plan to discuss this issue jointly with the National Confederation of Entrepreneurs, businessmen, bankers, insurers and other representatives of the financial sector," he said. "If negotiations are held, I think we will be able to make a common decision. In any case, active work is being carried out in this direction."

Nuriyev has not specified exemption from which taxes is planned to be discussed.

Earlier, a source in banking circles told Trend that Azerbaijani banks offer to exempt those clients, who can not repay their credit debts, from taxes. The banks are planned to be exempted from the payment of taxes.

The source said that the matter rests in temporary or complete exemption from payment of taxes for the period of repayment of credit debts. At the same time, the source has not specified the taxes from which banks and borrowers are expected to be exempted.

According to the Central Bank of Azerbaijan, the country's credit institutions reduced the amount of the issued loans by 28.5 percent up to 11,757.8 million manats in 2017 compared to 2016.

The amount of overdue loans for the year increased by 10.5 percent up to 1,626.7 million manats. The share of overdue loans in the loan portfolio of banks and non-bank credit organizations was 13.8 percent.

NBCOs to be able to connect to “Baku Approach” to reduce problem loans’ volume

Azerbaijan's non-banking credit organizations (NBCOs) will be able to connect to the "Baku Approach" in certain cases, Chairman of the Azerbaijan Banks Association (ABA) Zakir Nuriyev told Trend March 1.

"The "Baku Approach" will be applied if a client has overdue loans in several banks," Nuriyev said. "It is unlikely that such clients in Azerbaijan will have more loans taken from the NBCOs. However, if this happens, the NBCOs, of course, will be able to get involved in this process."

The "Baku Approach" is being created by analogy with the Istanbul and London approaches, which helped to cope with the financial crises in these countries.

According to the general principles of these approaches, a bank consortium restructures problem loans and facilitates loan terms for debtors who are in a particularly difficult situation.

Nuriyev added that the ABA expects the loan portfolio of Azerbaijani banks to grow in 2018.

"Lending to the Azerbaijani economy will definitely be increased if infrastructure projects being implemented in Azerbaijan successfully work," Nuriyev said.

According to the Central Bank of Azerbaijan, the country's credit organizations reduced the volume of issued loans by 28.5 percent compared to 2016, to 11.75 billion manats in 2017.

The volume of overdue loans grew 10.5 percent to 1.62 billion manats for the year. Their share in the loan portfolio of banks and non-bank credit organizations was 13.8 percent.

Iran reveals COVID-19 data for April 12
Iran reveals COVID-19 data for April 12
Iran reveals COVID-19 data for April 11
Iran reveals COVID-19 data for April 11
Iran reveals COVID-19 data for April 10
Iran reveals COVID-19 data for April 10
Loading Bars
Yuri Gagarin image lights up Dubai’s Burj Khalifa
Korean battery makers rally after battery dispute settlement
Inventory of basic goods in Iran's ports increase
Eni Turkmenistan Ltd opens tender for provision of directional drilling services
Azerbaijan's Nakhchivan records industrial production value growth in 1Q2021
Azerbaijan's housing agency talks further plans on building residential complexes
Georgia not to cut economic growth forecast - Minister of Economy
Russia restricts air service with Turkey from April 15 to June 1
Iran, Afghanistan discuss bilateral ties, latest developments
Georgia faces third coronavirus wave - NCDC
Turkey welcomes Ramadan with tight measures against COVID-19
Operator of Kazakh Kashagan to hold open round-table on Marine Access Channels Project
Nvidia to directly challenge Intel with Arm-based 'Grace' server chip
New oil drilling platform activated in Turkmen sector of Caspian Sea
War Trophy Park to open for visitors in Azerbaijan’s Baku soon
Azerbaijani, Maldives FMs hold exchange views issues mutual interest
Uzbekistan discloses progress on construction of new plant of Navoiazot company
Azerbaijani FM receives delegation of Italian Senate (PHOTO)
Azerbaijan’s Baku Metro introduces solution for automatic supply of voltage to trains (PHOTO)
Several audit companies in Azerbaijan included in network of int’l organizations
Current interest rate in Azerbaijan to improve position of local capital market - Unicapital
International IT Holding of Belarus implementing big transport project in Azerbaijan
Russia's Red Wings may launch flights from Yekaterinburg, Chelyabinsk to Uzbekistan
Iran's Energy Exchange announces products to be on sale on April 13
Bahar Azadi gold coin price rebounds in Iran
Uzbekistan increases export volume of clothing to Kazakhstan
Iran's Natanz nuclear facility continues to operate – AEOI
UAE reports 1,928 new COVID-19 cases, two deaths
Russia allows import of tomatoes to several Azerbaijani enterprises
Israel's fiscal deficit narrows as economy begins recovery
IMF makes prediction regarding Georgian external debt
UK, EU talks on Northern Ireland are constructive, differences remain
Georgian E-Space actively cooperating with car dealers to bring new electric vehicles
Russia, Uzbekistan approve text of space co-op agreement
Uzbekistan joins CIS industrial agreement
Uzbekistan, Kuwait launching direct flights
Georgia's external debt up due to COVID-19 shock - IMF
Azerbaijan's CBA signs contract to acquire licenses for cybersecurity
Uzbekistan’s centers of public services improve work on basis of Azerbaijan's ASAN
Iran's LPG exports decreases
USDA unveils forecast for Azerbaijan's barley production
Russian Technonikol looks to build thermal insulation plants in Kazakh Almaty region
Indian-American, 5, Reads 36 Books Nonstop In 105 Minutes, Sets Record
Weekly review of Georgian's capital markets
Georgian Inert Materials Complex company investing in extraction of gravel materials
Nar’s renovates its service centers in Baku and regions (PHOTO)
India becomes largest buyer of US crude in first quarter of 2021
Turkmenistan's Mary region opens tender for construction of schools
Iran implements its plan on domestic production in full - deputy minister
Azerbaijan publishes latest data on COVID-vaccinated citizens
Investments in Kazakhstan's agriculture surge
Several international companies express interest in Georgian FDI Grant
Minister discloses amount of export of Azerbaijan’s non-oil products
Iran tightens restrictions for travelers on borders with Turkey, Iraq
Azerbaijan confirms 1,151 more COVID-19 cases, 1,052 recoveries
Georgia to place new Eurobonds
Iran looks to set up advanced centrifuges at Natanz nuclear plant
Kazakhstan increases exports to UK
Iran Oil Ministry to fund startups
Iran unveils generation capacity of thermal power plants
Azerbaijan temporarily bans import of poultry meat from several countries
Georgia shares data on revenues from tobacco excise duty
S.Korean PM, Iranian Supreme Leader's Advisor discuss frozen Iranian funds
Kazakhstan, Belarus trade surges
Potato, onion planting completed in Dashoguz region of Turkmenistan
Iran's TEDPIX sees decline
Swiss government urges voters to back COVID-19 law that foes want to ditch
Kazakhstan exceeds plan on petroleum products output
High-voltage substation with digital control system to be built in Uzbek Jizzakh region
Azerbaijani president signs order to set up new enterprises in Balakhani Industrial Park
Revenues of Azerbaijan's Nakhchivan from communication services increase
Turkish Aksa Enerji building thermal power plants in Uzbek Tashkent region
Maersk Explorer completes drilling activities for Shah Deniz
Unicorns of 2021: Gupshup, ShareChat latest entrant to $1B club; total number rises to 10
In a first, surgery restores 'right' music to man's ear
Cargo transportation in Azerbaijan's Nakhchivan increases
Georgia reveals volume of pension fund's assets
Volume of SOCAR Ukraine’s aviation fuel supplies revealed
Baku Heydar Aliyev Airport gains 5-Star COVID-19 Airport Safety Rating
U.S., European consumers warm up to electric vehicles, but remain wary of price
Kazakhstan’s KAZAKHALTYN delists its shares from Stock Exchange
Azerbaijan's Nakhchivan sees increase in investments in fixed assets
Several contracts signed in Iran’s oil sector
Azerbaijan announces restoration of Araz newspaper's office building in liberated Fuzuli (PHOTO)
Domino's, Nuro to start robot pizza delivery in Houston
Turkmenabat cotton spinning factory of Turkmenistan exports most of its products
GDP of Azerbaijan’s Nakhchivan shows increase
Turkmenistan’s Foreign Economic Affairs bank talks volume of net profit for 2020
Average monthly nominal salary in Azerbaijan's Nakhchivan continues to grow
Kazakhstan Railways opens tender for rolling stock repair
Turkish Ziraat Bank shares forecast for Azerbaijan's GDP in 2021-22
Kazakhstan's gas consumption exceeds plan in 1Q2021
Kazakhstan’s Ulba Metallurgical Plant announces tender for equipment repairs
Iran has greater potential in technology than in oil sector - minister
Azerbaijan discloses daily volume of oil production for March 2021
Assets of Kazakhstan’s National Fund decrease
Iran's CBI allows some traders to import commodities, instead of revenues
Iranian technology companies produce number of aviation products
OECD countries’ crude oil imports fell in 2020
Georgia implements program aimed at supporting real estate sector
All news