Business

Azerenergy denies running regional power network

Azerenergy joint stock company issued a press release on some media publications that the personnel of the power distribution network in Lankaran, allegedly owned by Azerenergy, held a rally in front of the local executive body, demanding their pays.

The JSC stated that the regional power network is not its entity, but functions as a technological subdivision of Ali Bayramli Power Network, which is responsible for distributing electricity, collecting fees and managing the staff. The release dismisses the allegation that the collected energy fees of Ali Bayramli Power Network are totally transferred to Azerenergy.

Barmek Azerbaijan honoring obligations

Turkish Barmek Azerbaijan, which took over Baku's power grid on January 1 of 2002, has already paid Azerenergy joint stock company AZM68.7 billion for electricity received. The agreement on power sales to the Turkish giant envisions partial payment for a period of five years. The purchaser is to make payments, including VAT, at an average yearly price of energy sales and purchase. Thus, the Turkish company is to pay for half of the energy consumed in the first year of the contract, 55% in the second, 60% in the third, 75% in the fourth, and all price in the fifth year of the contract.

The purchaser is obliged to pay all arrears for power purchased in the fourth years of the contract in the ensuing 6-15 years.

Azerenergy confirmed Barmek's honoring its obligations Monday.

NBA revokes licenses of five banks

By Azernews Staff

The National Bank of Azerbaijan seems set to push ahead with its tough policy of regulating banking activities in Azerbaijan, as its management board has revoked the licenses of five national banks.

These are joint stock commercial Universalbank, joint stock Mech & R-Bank, Ulfat and commercial Caspian and Baybank.

The revocation followed the banks' incorrect regulation of risks, failure of their charter capitals to reach the NBA set mark and to form a reserve fund for possible losses, regular violation of economic norms, overall insolvency, and untimely execution of custom liabilities, as well as repeated NBA warnings, the bank reported Tuesday.

The liquidated banks have been assigned to set up commissions on abolishment and their clients are recommended to apply to them for interested issues.

Meanwile, EU jointly with the Association of Azerbaijan Banks are looking into conformity of the NBA prepared law on banks with European banking legislation in Baku.

Bakcell presents new 10+ package

By Araz Abbasov Azernews Staff Writer

Azerbaijan's first mobile operator, Bakcell joint venture presented its new 10+ package in a ceremony Monday.

The package costing AZM10,000 with 300 seconds of talk time gives a subscriber an opportunity to talk, say, 1500 seconds instead of 1200 when he or she buys four packages a month. The more subscribers speak, the more privileges they enjoy. Thus, using ten 10+ packages a month, the subscriber has 5250 seconds of talk time in place of 3000.

The packages are available at Smart Com shops.

Bank draft shows cracks

Conformity of the Azerbaijani law on banks with European banking legislation was discussed Tuesday at the Grand Hotel Europe of Baku in an event organized by the EU Tacis project "Introduction of the agreement on partnership and cooperation between Azerbaijan and the European Union" and the Association of Azerbaijan Banks.

Commenting on the draft law "On banks" proposed by the National Bank of Azerbaijan, CE legislation expert Dr. Menno Aden said European nations hadn't had a similar law regulating banking activities until recently. "The EU has little experience in the area and some points of the Azeri draft are very updated", he noted.

However, the European expert pointed out some drawbacks in the draft, that is, a lack of clauses protecting loaners, protection of banking capital and deposits, security of bank clerks, bankruptcy prevention, etc. Dr. Aden particularly indicated its unconformity with other laws. "The document shows duplications of the law "On monopolies" and the Civil Code as if it were prepared for the NBA", he underlined.

Addressing the event, head of the Bank training center Javanshir Abdullayev said that the NBA acts as a repressive body in the draft instead of a regulator.

A representative from the International Bank of Azerbaijan complained that joint stock commercial banks hadn't been included in the bill.

An NBA spokesman said that the draft law had been prepared jointly with IMF experts and took into account the reality of Azerbaijan. "The basic thing to do is to preserve deposits and enhance confidence in the NBA", he noted.

Also speaking at the discussions, deputy minister for economic development Ogtay Hagverdiyev said the bill would be in focus of the government and the parliament. He also noted some faults, saying that banking system should help develop economy. "Reading the draft, you guess that the state and the bank are separate. We shouldn't admit administrative methods on part of the NBA towards banks", he highlighted. The minister frowned upon the great volume of the draft, which consists of 84 pages, and its complicated language. He stressed the need for continuing discussions.