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WB appraises economic reforms in Azerbaijan

22 June 2016 [14:11] - TODAY.AZ

/By Azernews/

By Nigar Abbasova

Economic reforms implemented in Azerbaijan have given positive results, Mercy Tembon, World Bank Regional Director for the South Caucasus said talking to Trend agency.

“Azerbaijan and other countries of the South Caucasus region currently experience difficulties which are triggered by the drop in oil prices. Slowdown in the economic growth rate of other countries such as Russia has also influenced trade between the countries of the region. Moreover, the national currency has subjected to the process of devaluation. Nevertheless, it should be mentioned that the government of the country is working on dealing with the current situation,” she said.

Tembon underlined that the county’s finance ministry closely cooperates with the Central Bank to tackle problems occurred in the financial sector, the WB renders all necessary technical assistance in this regards.

“The WB special mission paid a visit to Azerbaijan in January 2016. Thereafter the country’s government has prepared a number of reforms concerning banking sector which have provided for the comprehensive insurance of deposits. The government also works over tackling bad loans and bank’s liquidity problems. In my opinion we are moving in the right direction,” she added.

Touching upon the issue of state budget defining WB representative said that the matter is the responsibility of Azerbaijan’s Ministry of Finance. She also underlined that defining the state budget depends largely on a number of factors such as revenue, expenditure, capital expenditures, investment and the current expenditure.

“I never doubt in the judgment of the Finance Ministry,” she said.

Previously Economy Minister Shahin Mustafayev stressed that the country is able to neutralize negative effects of the external factors on its economy therefore it is not going to reconsider the state budget forecasts for 2016.

Commenting on the issue, World Bank (WB) country manager for Azerbaijan, Larisa Leshchenko said that the creation of the Financial Markets Supervision Chamber as well as decisions taken by the entity will also yield positive results for the financial sector of the country.

“Creation of a new financial institution with qualified professional staff, strong support of the financial structures and consultants will definitely give a positive outcome,” she said.

She stated that any intervention of the financial regulator should be considered as a positive step as it promotes adaptation of the country to new challenges in the sphere.

“The sphere faces certain problems and challenges, but we should keep in mind that the majority of countries have also experienced such developments. Any changes are for the better, the main feature is forward motion. Decision-making and adaptation to the current conditions always lead to successful results.”

Public budget revenues in 2016 are expected to reach 16.822 billion manats ($11.202 billion), while the rate of expenditures will amount to 18.495 billion manats ($12.316 billion).

The budget deficit is expected to be at the level of 1.673 million manats ($1.109 million) which stands for 2.9 percent of the GDP. The forecast is based on an average oil price which amounts to $25 a barrel.

As of June 21, the price of Dated Brent oil, produced in the North Sea, was $48.8 per barrel. The price of Azeri Light crude oil rose to $50.8 per barrel.

Official exchange rate of the US dollar and euro to Azerbaijani manat was set at 1.527 manats and 1.7201 manats, respectively on June 22.

URL: http://www.today.az/news/business/152005.html

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