WEEKLY ECONOMIC REVIEW
The Milli Majlis [Azerbaijani parliament] heard a report by the Cabinet of Ministers on its activities in 2005 last week. Azerbaijani Prime Minister Artur Rasizade delivered a report. He said that 2005 was remembered for many achievements in the activities of the Cabinet of Ministers.
Rasizade noted that last year the Gross Domestic Product and average salary increased, reforms were held in the state government system, state credits approved for the development of entrepreneurship, positive results were achieved in the sphere of privatization and education.
Real GNP growth in 2005 was on 26,4% higher than in 2004 and reached 59,4 trillion of manats. This is the highest denominator among all other countries of the world he said
State budget incomes were filled up to 100,5% and increased on 38,8%. Budgets spending part has increased on 42,6% and reached 10,7trillion of manats. Aid possibilities for entrepreneurship have doubled and reached 200bln of manats, which made it possible to provide with credits more than 2200 entities.
Weight of credit investments in the economy of the state in GNP grew from 8,3% in the beginning of the year to 12,1% by the end. By the condition on January 1 ministry of Finances has allocated to private and legal persons more than 7,2 trillion manats of credits, which is on 45,6% more than in the beginning of 2005.
State foreign currency reserves have grown on 9,7% and reached $1 billion, which exceeds last year numbers in $125m. State oil fund stocks have grown in price on 44,8%,, making $1,4 billion. In general, strategic reserves of the country have grown on 29,8% reaching $2,394 billion. Foreign debt of the country is $1,650bn (12,8% of GNP against 18,6 % in 2004)
According to the Prime minister, the fact that currency reserves of the country exceed foreign debt 45% ($744 m) is good denominator, confirming solvency of the country.
Together with structural reformations Agroleasing stock company was created last year to support the agriculture; Hypothec fund was created to support the living problems of population and Azeristellikjzixat to solve energy problems. To solve the energy problems in the regions building of module electric stations has been started the minister said.
As it seems, a report by the government based on statistics turned out satisfactory. The results of studies of the activities of Barmek-Azerbaijan presented by the Ministry of Finances to the relevant bodies turned out unsatisfactory. The check-ups revealed exaggeration of figures, wrong implementation of accounts, use of additional expenses in the company. The Minister of Finances noted a number of problems in the activities of Barmek from the economic point of view and informed about non-targeted ineffective investments by the company.