Business

AZERI-SAUDI COMMISSION HOLDS FIRST MEETING

The first meeting of the Azeri-Saudi inter-governmental economic commission started at Hyatt Regency Hotel Tuesday. The meeting was co-chaired by the Saudi Minister for Trade Usam Bind Jafar al-Faghi and vice-president of the Azerbaijan government Yagub Ayyubov. Attending the meeting was the Saudi ambassador to Azerbaijan Ali Hasan Ahmad Jafar.

Mr. Ayyubov expressed his confidence that the commission would play a special role in developing bilateral trade, economic and scientific relations and called upon business people from the Kingdom to invest in the Azerbaijan economy and establish mutually beneficial cooperation.

He vowed on behalf of the government that all foreign partners would be provided with assistance. The vice-premier stressed the need for expanding bilateral turnover and thanked the Saudi party for the humanitarian aid.

Mr. al-Faghi voiced his regret over the poor level of trade relations, saying that mutual trade exhibitions and conferences on investment problems could identify the potential of both countries. He then suggested that sub-commissions be set up within the main commission to boost cooperation in trade, economics and investment.

The new sub-commissions are expected to discuss prospects of cooperation Wednesday.

"AZERKIMYA" UNDER-FULFILLS 2000 PLAN

The "AzerKimya" state company has under-fulfilled the 2000 plan by 20%, mainly due to regular power supply failures and problems with raw materials, president of the company Fikrat Sadighov told a traditional news conference at the YAP office Friday.

At the same time, the company has achieved a 13% surge in production over 1999. Mr. Sadikhov stressed the importance of attracting foreign investment to the sector.

According to him, a special emphasis should be placed on production of some types of raw materials for the chemical industry, which are currently imported from abroad at a high cost.

F. Sadighov said the company had prepared the list of enterprises slated for privatization, which includes tyre manufacturing, iodine and pharmaceutical plants of Baku, the Salyan plastic works, 4 plants in Mingachevir and Neftchala, and the Sumgayit polyethylene and super-phosphate works.

The Ministry for State Property is expected to evaluate the enterprises shortly. Their privatization will commence on a corresponding presidential decree, Mr. Sadikhov said.

Iodized salt

The Neftchala iodine factory is going to launch production iodized salt in April, president of "AzerKimya" said. According to him, 100 hectares of alkali soil in Neftchala has been provided to the factory, which is expected to produce 300,000 tons of iodized salt, both domestic and technical, a year.

EXPENSES ON SCIENTIFIC RESEARCH TAX EXEMPT

The government is currently considering the draft concept of an innovative policy in key industrial sectors in CIS, which has been prepared by Russian Ministry for Industry, Science and Technologies. The document envisions tax exemptions for expenses on science researches and broader VAT benefits for scientific research and experimental work.

According to an Azeri specialist, the influx of foreign goods to post-Soviet markets caused a sharp decline in the demand for domestic products. The number of specialists involved in science research has shrunk almost in all CIS countries. Thus, in 1999, as compared to 1991, the decline constituted around 50%. In Azerbaijan and Uzbekistan one in 10 scientists has stopped science work, in Belarus and Russia one in 5, in Moldova one in 4, in Armenia, Georgia, Kyrgyzstan, and Ukraine one in 3, and in Kazakhstan, Tajikistan and Turkmenistan one in 2.

GUUAM MEMBERS TO TALK OVER COMMERCIAL PROSPECTS

Representatives of Chambers of Commerce and Industry of Georgia, Uzbekistan, Ukraine, Azerbaijan and Moldova will meet in Baku May 3-5. Each country is expected to delegate 10 people to the meeting, which will focus on prospects of commercial and economic relations within the organization. The Azerbaijan Chamber is organizing the meeting.

NEW DEPARTMENT UNDER TRADE MINISTRY SET UP

A new department for consumer rights has been set up under the Ministry of Trade as part of a structural changes program, Minister for Trade Hussein Bagirov told Azernews Thursday.

According to him, other new subdivisions had been established in the last 6-7 months, including departments for analysis and prognosis, electronic commerce, department for contacts with producer organizations.

AZERI-TURKISH INTER-GOVERNMENTAL ECONOMIC COMMISSION TO MEET SHORTLY

A regular meeting of the Azeri-Turkish inter-governmental economic commission is due in Baku March 26-28. According to a government source, a month prior to the meeting working groups of the two countries will get together in Baku to prepare the package of issues to be raised at the commission meeting. The commission is expected to focus on 13 economic projects that have mainly been proposed by the Turkish party.

The commission last met 4 years ago.

TREASURY SYSTEM TO BE SET UP

Finance Ministry intends to set up its own treasury system before the end of the year. All financial departments and banks of the republic will be managed by a computer-aided system, Ministry of Economics said Monday.

By means of the treasury system, the Ministry of Finance will exercise control over state expenditure.

The Ministry of Finance is also working on transferring the employment fund and the fund of social security of the handicapped to the treasury. In 2004, the system will also be joined by the state social security fund as well.

SEVERAL FISHING ENTERPRISES TO BE PRIVATIZED

Ministry of Economics is working on draft privatization program of around 60 enterprises and organizations of the "AzerBaliq" (Azeri Fish) state concern, according to a Ministry source.

The draft document will be forwarded to the Cabinet of Ministers next week. Ministries of Justice, State Property and Economics have agreed on privatizing various enterprises of the concern, except fish breeding and scientific research entities.

These will mainly be producing and processing enterprises and auxiliary services.

BANK TESTING ENTERS FINAL STAGE

The National Bank of Azerbaijan has entered into the last stage of bank tests for a subsequent involvement of national banks in the system of big-sized payments. Participating in the final (fourth) stage of tests, dedicated to the technological capacities of the banks to execute money transfers in national currency, are the United Credit, Agricultural and Industrial Bank and the Azerbaijan Railway Bank.

12 banks have been tested since October 2000. The first stage was passed by the International Bank, Most Bank, HSBC, BayBank, the second by the Bank of Baku, Arkobank, Postbank, Kocbank, and the third by M Bank, Parabank, Rabitabank and CI bank.

Ministry of Economics told Azernews Tuesday that the mentioned banks may apply for a corresponding certificate.