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THE ASIAN BANK OF DEVELOPMENT WILL ALLOCATE $20 MM TO AZERBAIJAN FOR MICRO CREDITING
BAKU.07.05.2004.MEDIA-PRESS:
The Asian Development Bank (ADB) has given an agreement for allocation of $20 MM for realization of projects of micro crediting. The Minister of Economic Development of Azerbaijan Mr. Farhad Aliyev has said.
By his words, the credit agreement is ready. If in the next time it will be signed, since 2005 it would be possible to realize this project.
Up to this the ADB has approved the allocation of the first credit to Azerbaijan by a volume of $22 MM for protection constructions from floods. The credit was allocated for 32 years and annual interest rate for first 8 years makes 1% and 1.5% in next years. The means will be spent for strengthening banks of rivers and protection constructions in 12 regions of the country and as well for creation of the system of forecasting floods in Azerbaijan
THE VOLUME OF TECHNICAL AID OF THE EU TO AZERBAIJAN WILL REACH 400 MM UP TO 2007
BAKU.07.05.2004.MEDIA-PRESS:
The volume of technical aid being rendered by the European Union to Azerbaijan will reach 400 MM evro by 2007, the chief of the information center of the EU Mr Yani Brosher considers. She has informed about this during the presentation of programs being realized by the EU in Azerbaijan.
"For 1992 - 2003 the volume of technical aid of the EU, rendered to Azerbaijan has made 370 MM evro. However, within frameworks of the program TACIS for 2004 - 2006 Azerbaijan will receive 30 MM evro. In connection with this a total of technical volume will increase up to 400 MM evro", - Mrs. Y. Bosher has said. She has emphasized "the EU considers the cooperation with Azerbaijan as of great importance".
THE TOTAL CAPITAL OF BANKS IN AZERBAIJAN SHOULD INCREASE UP TO $5 MM
BAKU.07.05.2004.MEDIA-PRESS:
The Management of the National Bank of Azerbaijan (NBA) has decided to increase the low level of the authorized capital of banks operating in the country. The Chief of the Management of the NBA Mr. Elman Rustamov has informed the journalists about this.
By his words, by the beginning of 2005 each bank should increase its total capital up to $3.5 MM and already by 2006 - up to $5 MM. The Bank Association of Azerbaijan has approved this solution.
THE AMBASSADOR OF AZERBAIJAN AND MINISTER OF JUSTICE OF UKRAINE HAVE DISCUSSED ISSUES OF PREPARATION OF THE VISIT OF THE PRESIDENT MR. I. ALIYEV TO UKRAINE
BAKU.07.05.2004.MEDIA-PRESS:
The Minister of Justice of Ukraine Mr. Alexander Lavrinovich and the Ambassador of Azerbaijan in Kiyev Mr. Talyat Aliyev have discussed questions on the preparation of the forthcoming official visit of the President of Azerbaijan Mr. I. Aliyev to Ukraine.
As it has been informed in the press service of the Ukrainian Ministry of Justice, problems on execution of legal verdicts on the territory of Ukraine, in which citizens or juridical persons of Azerbaijan are one of sides.
The officials as well have considered problems of participation of the Azerbaijan community in the social life of Ukraine, particularly within frameworks of saving and keeping the national traditions.
THE EDUCATIONAL SYSTEM IN TURKMENISTAN: DEGRADATION ORBIT
BAKU.07.05.2004.MEDIA-PRESS:
On June 1 the Ministry of Education of Turkmenistan will execute the order of the President Mr. Saparmurad Niyazov on recognition invalid all diplomas on graduation from the high education schools received abroad after 1993 and retirement of persons having such diplomas from the state service. This edict damages seriously on the Turkmen students and number of professionals, which is regressing.
The further degradation of the educational system will bring to destabilization of the political situation in Turkmenistan in the end, the former official of the Turkmen government thinks. "The appearance of non-educated generation unable to correspond to calls of changing world" will become a result of policy of Niyazov", - a retired official has said. "The longer this continues, the worse situation and collapse of the state (overloaded by the disagreements) is the most probable".
The analysts consider the last order of Turkmenbashi a segment of policy directed to pushing away of citizen of non-Turkmen nationality from the country and weakening of the foreign influence on the society.
Particularly, Niyazov clearly is getting weakening of the affection of Russia and Russian language. For the last five years all Russian language schools have been closed for last five years, programs of studying of English and Russian languages have been reduced sufficiently. Teaching in Universities is made almost in Turkmen language and this means that professors and students who are not fluent in Turkmen language are excluded from educational schools.
The decision of Niyazov on non-recognition of foreign diplomas is a serious blow for students studying in foreign Universities at the present time. They will understand now that their efforts on getting diplomas are vain. Moreover, a they must solve a dilemma now: is it worthwhile to return to the motherland where their knowledge are not required.
After reaching independence in 1991, the educational system has been regressing constantly. In 2001 Niyazov has introduced his book "Ruhnama" instead of some traditional scholar subjects. As it is said inn the report of Helsinki Civil Assembly published this year, a goal of the administration of Niyazov is not education of children, but most likely "forced propaganda amongst them and depriving them of ability for critical analysis of the regime.
THE AMERICAN ANALYST: THE IMPORTANCE OF AZERBAIJAN FOR THE US' POLICY AND A NECESSITY OF ACCESS TO THE CASPIAN OIL WILL PROBABLY BECOME MORE EFFICIENT THAN EFFORTS OF THE ARMENIAN LOBBY
BAKU.07.05.2004.MEDIA-PRESS:
The countries of the West, in the first turn the USA, "at last have understood the geological importance of the Caspian Sea and started conduction of relevant policy in the region", The analyst of the Ministry of Defense of the USA Mr. James McDogall has expressed such idea on pages of the analytical bulletin "The Perspective". By his opinion, "political and economic development of the Caspian countries in the beginning of the current year has determined mainly the significant increase of interest of the American police officials to it".
As Mr. McDugall writes in the article "The New Stage of the US Policy in the Caspian Basin", relations with Azerbaijan show especially evidently geopolitical interests of the USA in the region. "Causes of this should be found in both geography and policy", - he writes - First of all, the explored and supposed oil resources of Azerbaijan exactly will play significant role on the world oil market in the twenty first century. The second, Azerbaijan has situated historically on a cross of sea and land ways. Today, taking into consideration numerous transport and communication lines laying through Azerbaijan and connecting Asia and Europe - so called Eurasian corridor, it is possible to say surely that the strategic position of Azerbaijan make it the most important country of the region". Azerbaijan, Mr. McDugal considers, is the most important country within frameworks of geography". Azerbaijan is already the most significant component in relations West - East and may play the same role in relations North - South.
And the position of the Washington administration in respect to amendment 907 in the "Act of 1992 on Freedom Maintenance", which forbids rendering assistance to Azerbaijan up to the President does not confirm the Congress that Azerbaijan has stopped the blockade of Armenia.
The American analyst has estimated this amendment on pages of the periodical issue "National Interest" as a result of "successful lobbying of such groups as the Armenian Assembly of the USA and the Armenian National Committee". A number of famous experts including ones from the American "Heritage Fund", which prepares recommendations for the Republican Party, have supported removal of the 907th amendment.
By the opinion of Mr. James McDugall, "growing interest to Azerbaijan and recognition of its importance for the US' policy as well accounting its national interest in connection with a necessity of access to the Caspian oil will appear most likely more effective than efforts of the Armenian lobby groups". "The same opinions on the strategic importance of Azerbaijan of high-ranked state officials from executive and legislative organs, both political parties, foreign ministry, scientific society and responsible officials of oil companies are based mainly on one matter in the end - oil, - he writes - Large oil supplies of Azerbaijan and other Caspian countries will require various approach in the XXI century when the USA will build their policy in conditions of less dependence of countries of the Persian Gulf.
Mr. McDugall has pays attention on the fact that activities of the USA in the region is limited enough for policy of keeping directed against Iran and sanctions against companies, which are engaged in business with Iran. A number of experts of external policy have called already to revising the US' policy in respect to Iran for the last political changes and geopolitical position of the Caspian region. By the opinion of Mr. McDugall this policy "is really is being revised".
The development of the American-Russian relations will affect significantly as well on future policy of the USA in the Caspian region. Mr. Talbot, the leading expert of relations with Russian in the administration of Mr. B. Clinton has showed this in his recent speech in the Institute of Central Asia. Particularly he has warned the present President Administration about consideration as "Large Play" the form or relations being founded in the region. Instead of this he suggests a model, in accordance with which everybody cooperate and win". "Today there is a lot of questions, which are vitally important for the neighbors of Russia; particularly the question on that how does Russia want to build its relations with the rest members of the CIS", - he has noted.
A policy in respect to the countries of the Caspian region, Mr. James McDugall thinks, "will be determined by internal and international pressure as well ideological and geopolitical factors in the end", however, it is especially important that at last the regional countries have got a freedom, when they broke free from the multicolored palette of former USSR and at the present time are getting their own significance and recognition".
IN AZERBAIJAN ON APRIL THE STATE RECEIVED 349.6 MM CUBIC METERS OF GAS
BAKU.07.05.2004.MEDIA-PRESS:
On April in Azerbaijan the state received 349.6 MM cubic meters of gas. The State Oil Company of Azerbaijan received 280.6 MM cubic meters, joint companies - 6.2 MM cubic meters and the Azerbaijan International Operating Company on development of the fields "Azeri - Chiraq - Guneshli" (AIOC) - 69 MM cubic meters.
From the mentioned volume 154 MM cubic meters of gas have been delivered to the JC "Azerigaz" and this is by 8.9% less than it has been planned. The rest 195.6 MM cubic meters were delivered to the Azerbaijan gas processing plant. This is by 19.4% more than it has been planned. Totally since the beginning of the year "Azerigaz" has received 637.4 MM cubic meters of gas and the AGPP - 792 MM cubic meters.
Azerbaijan needs in up to 10 bn cubic meters of gas annually. In the past year Azerbaijan purchased 4 bn cubic meters of "blue fuel" from the international group of companies "Itera". This year "Gazprom" replaced "Itera" and plans to deliver 2.75 bn cubic meters of the natural gas to Azerbaijan. Recently else one agreement between the SOCAR and the CJC "KazRosGaz" has been signed on deliveries by 4.5 bn cubic meters of gas.
The CJC "KazRosGaz" started the gas deliveries since January of the current year. For January - February Azerbaijan has imported already almost 1 bn cubic meters of gas from Kazakhstan. The SOCAR purchases the Kazakhstan gas for $52 per 1 thou cubic meter. The annual import gas demand of the Azerbaijan market makes about 6 bn cubic meters.
The republic will receive the subsidiary volumes of gas also since within the frameworks of the project of extension of the Sangachal oil terminal the gas drying installation will be installed. Today all oil delivered to the terminal is separated from water and gas. Received gas is liquated. The construction of new installation would not allow liquating gas, but delivering it to the State Oil Company of Azerbaijan, which in its turn will deliver it to consumers. Gas will be burned in flames only in emergencies. For realization of this idea the SOCAR also plans to build special gas receiving installation and the pipeline up to the Sangachal gas distribution point.
IN THE NEXT TIME TURKEY WILL BUILD TWO OIL PIPELINES ROUNDABOUT THE STRAITS OF BOSPORUS AND DARDANELLE
BAKU.07.05.2004.MEDIA-PRESS:
Turkey will start the construction of two oil pipelines for reduction of loads on the straits of Bosporus and Dardanelle, through which ten oil-bulk ships travel. The Minister of Energy and Natural Resources of Turkey Mr. Khilmi Guler has informed about this.
The reduction of a number of tankers traveling through the straits, he has noted, should reduce significantly a threat of accidents. "The first oil pipeline, the Minister has noted, will be laid between the dwelling centers Igneada and Saros. The second oil pipeline will connect the port Samsun in the Black Sea with the oil terminal Ceyhan in the Mediterranean Sea.
Mr. Guler has declared that Ankara does not wish using of the Turkish straits as oil pipeline. However, this does not mean removal of existing agreements on transportation of oil through straits, the Minister has said. At the same time, Mr. Guler has emphasized, the daily increase of a number of ships, which transport oil through Bosporus and Dardanelles is a great threat for dwellers of these regions and as well the environment. However catastrophe of one such ship may put under a threat oil transportation through straits, Mr. Guler has emphasized.
THE PRESIDENT OF THE OPEC PROMISES TO INCREASE QUOTAS FOR PRODUCTION AND EXPORT OF OIL
BAKU.07.05.2004.MEDIA-PRESS:
In connection with the new sharp growth of prices for oil and oil products,, the OPEC, most likely, will decide to increase quotas on oil production and export. The President of the world cartel Mr. Purnomo Yusgiantoro has declared this. By his words, the out of turn 131st conference of the OPEC may take such decision on June 4 in Beirut.
As the President of the OPEC has noted, the solution of the last Vienna Conference on reduction of quotas by one million bbl per diem "does not correspond to the present requirements and demands, which are dictated by development of energy markets and so a time of revising on behalf of conscious idea have come".
Meanwhile, experts note a growth of dissatisfaction of majority of countries-large oil importers, the USA in the first turn by the actions of the OPEC.
High-ranked officials of the American Ministry of Energy determinedly declare about "the decision of the OPEC accepted on the last conferences in Algeria and Vienna are directed not for balanced oil demands and energy markets stabilization, but destroying economies of states depending on oil deliveries".
"The OPEC traditionally increases oil quotas from the third quarter. And the words of Purnomo Yusgiantoro may be estimated as only an effort of reassuring states oil consumers and no more", - the expert has noted.
THE BRITISH ALDEX LIMITED HAS PURCHASED THE DASHKESAN MINING CONCENTRATION INDUSTRIAL COMPLEX IN AZERBAIJAN
BAKU.07.05.2004.MEDIA-PRESS:
The Department of Managing and Privatization of the State Property attached to the Ministry of Economic Development of Azerbaijan and the British Company Aldex Limited have signed the agreement on purchase-sale of the JC "The Dashkesan Mining Concentration Industrial Complex".
As Media-Press has been informed in the Ministry of the Economic Development, in accordance with the agreement, Aldex Limited should transfer 1.2 bn manats to the state budget, present 85 thou privatization cheques and the same number of the privatization options. Besides, for conduction of preliminary works, the company should transfer 544.5 MM manats to the accounts of the JC.
Aldex Ltd. won the investment competition for purchasing the Dashkesan MCIC on December of the past year. In accordance with the investment program, the company is liable to invest $11 MM to the company. The program is accounted for two years and divided in four stages. The investments will be directed for restoration of production, reconstruction of the rope way "Buraz" and railway "Gushchu", operating in the industrial circle of the venture. Expectedly, the full restoration of the activity of the JC will create 300 new job places.
IN 2004 A GROWTH OF INVESTMENTS TO THE ECONOMY OF AZERBAIJAN FROM ALL SOURCES WILL MAKE 30%
BAKU.07.05.2004.MEDIA-PRESS:
The investments to the economy of Azerbaijan from all sources in 2004 will increase by 30% expectedly. And non-oil sector makes 80% of this growth. The Chief of the Financing-Credit and Economic Policy Department of the Cabinet of Azerbaiijan Mr. Oktay Akhverdiev has called such rates.
By his words, the state investments this year will make about 460 bn manats. However, these means will be transferred for financing the share of the state in the different projects invested by international financing structures. As well a number of projects will be realized in the regions of the country. Besides, the realization of several projects within frameworks of the state program "Reduction of Poverty and Economic Development of Azerbaijan" will start.
We shall note that in accordance with results of the past year 17.81 trln manats were transferred to the economy of the country or 71.2% more than in 2002. And the non-governmental sector received 15.805 trln manats or 88.7% of all investments.
Totally the past year the volume of investments in account of internal sources made 3.47 trl manats (19.5% of all investments) and 14.341 trln manats for foreign. The volume of foreign investments for 2003 has grown by 84.2% in comparison with 2002.
The total volume of investments to the economy of Azerbaijan since 1992 (a period of reception of independence) up to 2003 made $16.5 bn manats.
The official rate by May 7 - 4916 manats/$1.
AN EXTERNAL DEBT OF AZERBAIJAN MAKES ABOUT $1.9 BN
BAKU.07.05.2004.MEDIA-PRESS:
An external debt of Azerbaijan makes about $1.9 bn. And theoretically in the nearest two-three years the government may increase the external debt up to $2 - $3 bn. The Chief of the Financing-Credit Economic Policy Department of the Cabinet of Azerbaijan Mr. Oktay Akhverdiyev has expressed such opinion.
By his words, such total of debt is not dangerous for Azerbaijan as terms of returning of taken credits are very large and by this time the finance position of Azerbaijan will be more strengthened.
A state debt by 45 - 50% of the GDP is considered the highest safe level. After this the economy of country appears in default condition. The state debt is on a level by 22 - 23%. Nevertheless, before taking credits for different projects, it would be necessary to affirm that they will are profitable, Mr. O. Akhverdiyev has emphasized.
"As compared to other countries of the CIS, Azerbaijan has a very high credit rating. This allows us to receive credits and even investing. Only Russia and Kazakhstan have such rating in the CIS. Now negotiations on improvement of credit rating by one degree additionally are conducted", - Mr. O. Akhverdiyev has said.
THERE IS NOT A RISK FOR CAPITAL ALLOCATION IN AZERBAIJAN
BAKU.07.05.2004.MEDIA-PRESS:
There is not a risk for capital allocation in Azerbaijan as laws of the country allow private sector to develop. Naturally, there are negative facts, however they are single. The Chief of the Financing-Credit and Economic Department of the Cabinet of Azerbaijan Mr. Oktay Akhverdiyev has expressed such opinion.
By his words, the risk of capital allocation is associated with sales markets. For example, before allocation of money to chemical industry, machinery, metallurgy industry of Azerbaijan, possible sales markets should be studied and then a decision on investments should be taken. If the sales market is found, naturally a risk of non-returning of investments is minimum.
70 BN MANATS HAVE BEEN ALLOCATED IN AZERBAIJAN FOR THE DEVELOPMENT OF BUSINESS FOR 2002 - 2003
BAKU.07.05.2004.MEDIA-PRESS:
In 2002 - 2003 the state allocated 70 bn manats for the development of business in Azerbaijan. For this period 350 investment projects were invested. And during their realization 6.5 job place were opened additionally.
As Media-Press has been informed in the Ministry of Economic Development of the country, the President Edict dated from May 4, 2004 "On Improvement Using of Means of the National Fund of Business Support" creates new opportunities for the further development of private business.
In accordance with the edict, for allocation of credits (mainly) in the regions of the country, non-bank credit organizations will be attracted besides of banks-agents. Each such organization will receive credit line by a volume of 200 MM manats.
At the same time it is conjectured that for financing large projects in the regions of the country such as creation of agricultural services, ventures on agricultural production processing, up to $200 thou may be allocated. The interest rate of credits of the Fund of Business Support should not exceed 1% for banks-agents. And they in their turn may allocate credits to businessmen by a rate not exceeding 6% of all credit total.
This year it is conjectured to allocate 100 bn manats for support of business. In 2005 this value will increase up to 250 bn manats. In the previous five years by 13 bn manats were allocated (totally 65 bn manats) and totally 6 bn manats were spent.
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