News in brief

POPULATION MISTRUSTING BANKS

As of November 1, 2000, 2.3 trillion manats had been printed (18.4% over 1999), according to the Ministry of Economics.

Of this amount, 1.22 trillion manats were in circulation (21.3% over 1999). Cash and non-cash hold only 11.56% of GDP, which is extremely low for a normal development of the economy. For transitional economies, where the bulk of the money is in the hands of the population (due to the distrust for the banking system), the figure should fluctuate between 20 and 30%.

EMISSION ABOVE NEEDS

A little over 1 trillion manats have accumulated in the National Bank reserve fund, of which 459 billion is fit for circulation, 444 billion manats are new banknote, and 101 billion will be destroyed. As of November 1, 2000, there were 4.7 billion manats in circulation.

In 10 months of 1999, 7.531 trillion manats entered banks and 7.564 trillion were released. NBA emission over this period constituted 52.6 billion manats (0.3% of population incomes) or 19 billion manats more than the needs.

The structure of NBA earnings was mainly formed by the sale of hard currency (35.4%), population deposits (0.46%), taxes and duties (7.36%), sale of fuel and lubricants (8.1%), private enterprises (20.2%), and other revenues (28.5%).

20% of NBA's spending was made up of salary payments, 23.4% other payments to private enterprises, 5.7% pensions and allowances, 8.3% hard currency, and 42.6% other payments.

NEW TELEPHONE EXCHANGE IN BAKU

A new 34-indexed telephone exchange with the capacity of 5,000 subscribers has been commissioned in the Yasamal district of Baku.

Besides, the ATE-60 has been expanded by 1,000 subscribers, while modern equipment installed in ATEs-50, 51, 33, 31, 40, and 41 allowing to increase the capacity of each by 512 subscribers, according to the Ministry of Communication.

NEW TELEPHONE EXCHANGE LAUNCHED IN LANKARAN

A new modern electronic telephone exchange for 5,000 subscribers has been put into service in Lankaran. The exchange has been hooked to the fiber-optic cable line Trans-Asia-Europe.

Turkish "Teletas" was involved in construction and mounting of equipment.

GRAIN RESERVES NO LONGER NECESSARY

It is no longer necessary for Azerbaijan to accumulate grain in the reserve fund, according to the minister for agriculture Irshad Aliyev. He said 3-month grain reserves were stored in the fund earlier to make up for a potential delay in imports. Since Azerbaijan is currently capable of addressing its own needs for grain (1,540,000 tons were produced this year), there is no need for any reserves, I. Aliyev said.

EXPENSES OVER INCOME

In November, monetary incomes of the population made up 1,453,500,000,000 manats and expenses - 1,502,900,000,000 manats, as the former exceed the latter by 49.4 billion manats.

As of 11 months of 2000, an average per capita income constituted 186,600 manats.

REMAINDER OF UNCLAIMED PRODUCTS UP

As of early December 2000, unsold products totaling 597 manats, or 31% (worth 141 million manats) over 1999, remained in warehouses.

The bulk (84%, or worth 119 billion manats) occurred on the AIOC crude, which accumulated in its terminals in November.

Three-fourths of the remainder falls on industrial enterprises in Baku.

CEMENT PRODUCTION UP

In January-November 2000, cement production made up 227,300 tons, or 46% over 1999. The considerable surge has resulted in a 21% increase in the production of construction materials. Meanwhile, production of other construction materials has declined, such roofing slate by 90%, construction brick 14%, glass 7%, stone wall blocks 42%.

HOUSING PRIVATIZATION PACE SLOWING DOWN

Since the beginning of privatization, 299,000 apartments with a total space of 15,700,000 square meters, or 47.5% of total residential space slated for privatization, have been privatized.

In January-November 2000, 10,800 apartments totaling 596,000 square meters were privatized, including two-thirds in Baku.

The share of apartments privatized in 1997 in overall housing privatization volume was 9.8%, in 1998 - 7%, in 1999 - 4.5%, while in 11 months of this year below 3.6%.

MOST SAVINGS IN HARD CURRENCY

As of early December 2000, bank deposits of the population made up 380 billion manats, including 55% kept in private banks.

A sixth of all deposits is kept in manats, while the rest in hard currency. The volume of the former has slightly decreased and of the latter increased by 45%.

LAND PRIVATIZATION ONGOING

As of early December, state land ownership acts were forwarded to 727,087 families, or 3,225,225 people, according to the State Land Committee. 1,323,362 of 1,327,700 hectares of land have been already privatized.

Of the total of 8.6 million hectares available, 22.2% has been retained in state's hands, 31.4% transferred to municipal property, while 24.4% is earmarked for privatization. The rest is under Armenian occupation.

FARMERS TO RECEIVE PECUNIARY AID FROM WB

480 peasant farms will be funded next year from the World Bank's "Agricultural development and crediting" project earmarked for 4 years and valued at $33 million.

FREIGHT TURNOVER UP

In 11 months of 2000, freight turnover on all types of transport made up 73.5 million tons of consignments, or 17% over 1999. Half of the cargoes were transported by automobiles, 20% by railway, 19.3% by pipelines, and 10.7% by sea.

Freight turnover in the private sector has risen from 51.2% to 51.6%.

NEW ENTREPRENEURSHIP SUPPORT PROGRAM IN PREPARATION

The draft state program of small and medium enterprise development for 2001-2003 is under consideration at the President's office. The program envisions 4 core directions: restructuring, introduction of advanced technologies, financing, safeguarding entrepreneurial rights.

Problems of business financing will be solved through opening special credit lines, including through World Bank, EBRD, US Shore Overseas Azerbaijan, German Federal Agency KFW, etc., as well as through the government at the expense of the State Foundation for Support of Entrepreneurship.

According to statistical data, 90% of the means invested in small and medium business are made up of bank credits. However, entrepreneurs face problems with repayment of credits, considering the short-term nature and high stakes ranging from 20 to 42%.

Azernews

AssA-Irada