Business

NEW BANK FETCHES AZM25.6BN

By Anar Jabrayilli Azernews Staff Writer

In 14 months of work, the Universal Joint Stock Bank (UJSB) earned AZM25.6 billion, of which profit constituted AZM4.5 billion. Of this, AZM7.3 billion and AZM2.3 billion respectively were earned in the first quarter of 2001, chairman of the UJSB Board of Directors Zakir Zeynalov told a news conference at the "Yeni Azerbaijan Party" Friday.

The Bank was founded on February 21, 2000 in a merger of the "Agri-Industrial Bank", "Industrial Investment Bank" and "Savings Bank".

It has 88 affiliates throughout the country with assets totaling AZM146 billion.

Population keeps AZM48 billion in the Bank, or 12% of all bank deposits in Azerbaijan.

Offered interest on sight deposits is 2%, urgent deposits 6% and bonus deposits 8%.

Also accepted are hard currency deposits.

Technical assistance

In an effort to boost the liquidity of the Bank, the Ministry of Finance allocated AZM52 billion from the state budget to it in February, Mr. Zeynalov said.

AZM31 billion more will be allocated before the end of 2001, he said.

According to him, the UJSB is also in talks with the World Bank. On the first stage, WB is to provide $1.7 million in technical assistance before the end of 2001.

25 Azeri banks, including the state-owned Universal Joint Stock Bank (UJSB), are currently hooked to the international bank services system AZIPS, including some foreign and commercial banks.

According to him, AZIPS, in Azerbaijan since mid-February, enables money transfers to any country of the world in just 15-30 seconds.

Now, such stations are available in 8 UJSB branches in Baku, Ganja, Nakhchivan, Masalli, Guba, and Shaki.

Serving half million pensioners

88 affiliates of the Universal Joint Stock Bank currently issue pensions to 500,000 retired people and can serve 100,000-150,000 people more.

The Bank has been authorized to issue pensions by the Ministry of Labor and Social Security, which preferred it to the Postal Service in the wake of serious embezzlements of retirement funds, according to the Board Chairman of the Bank Zakir Zeynalov.

According to him, the Bank is currently working on a draft program of collecting utility payments from the population and intends to cooperate with the International Bank in this area.

The bank's presence in most of Azerbaijan's provinces makes this objective feasible, he said.

Debit cards

The UJSB is expected to introduce its local debit cards in a matter of one month. The cards will be used in paying salaries and pensions. On an agreement with "AzerCard", the local debit cards will be brought to the republic shortly, Zakir Zeynalov said.

Mr. Zeynalov indicated that US traveler checks have also been delivered to Azerbaijan. Forwarding these to the Bank, foreigners can receive cash. So far, the system exists only in Baku, but it will soon cover Sumgayit, Ganja, Nakhchivan, etc.

AZERI VESSELS TO NAVIGATE IN RUSSIA

Russian government has approved the proposal by Russian Transport Ministry to allow for the passage of Azeri cargo vessels along Russia's internal routes of Astarkhan-Rostov and Astarkhan-St. Petersburg in 2001, Russian embassy said Friday.

Each such trip will have to be authorized by the Ministry and will be subject to frontier, customs, sanitary, and veterinarian statutory inspections applicable in Russia.

MORE VOUCHERS TRADED

The Ministry of State Property has announced the results of the 51st voucher auction of April 2-6. A source from the ministry told Azernews Monday that 33,570 vouchers were traded for the shares of 12 joint stock companies.

18,265 vouchers were traded for the shares of "SumgayitTrikotaj" (knitted garments) and 5,755 for those of "BakiEnerjiGurashdirma" (energy mounting) JSCs, which, in fact, were the most attractive.

The shares of "SumgayitTrikotaj" traded at the rate of 2 shares per voucher, while those of "Mingachevir Mekhaniklashdirma-5" (mechanization) - at 87 shares per voucher.

LIBYA OPENING DOORS TO INVESTORS

Against the backdrop of US Administration's tendency to ease economic sanctions against Iran, Iraq and Libya, Libyan government has taken first steps toward the country's re-integration with the world community.

One of such steps has been the government-proposed attraction of foreign investors program. Libya's new Law on Foreign Investment is both safeguarding foreign investor rights and providing them with extensive advantages.

In keeping with the new law, Libyan Foreign Investment Board has said it is ready to provide an exemption from all custom duties and taxes associated with the imports of machinery, tools and equipment, as well as primary materials, spare parts and supplementary equipment.

Also provided is five-year tax immunity on profits generated from all investment activities. Such projects as food production and processing, water and energy conservation and environment related projects will be particularly encouraged.

Such sectors as industry, tourism, transit trade and services are described as the most lucrative for potential investors.

In industry, for instance, profit margin is rather high and is accompanied with the abundance of raw materials, secure and cheap energy resources, while the country itself is in need of many industrial projects.

Over 2,000 km of beautiful southern Mediterranean beaches, spectacular landscapes in the mountains in the north-east and north-west-south, deserts with beautiful oases, as well as archaeological sites spreading all over the country make Libya a popular tourist attraction.

Libya has the needed infrastructure of seaports, airports and roads that extend deep into desert to reach the interior of Africa. This, together with important geographical location, make investment in transit trade well worthy.