Tag Archives: economy

Remittances drop in Georgia

JUNE 15 2016 (The Conway Bulletin) – Georgia’s Central Bank said remittances from abroad fell by 5% in May to $92.9m, compared to May 2015, a sign that the regional economic malaise is still biting economies in the South Caucasus and Central Asia. Money transfers from Russia represented one-third of all remittances last month. Remittance flows to Georgia have also been badly hit by Greece’s economic problems. Greece, also a predominately Orthodox country, had been the second highest originator of remittances to Georgia.

ENDS

(News report from Issue No. 285, published on June 17 2016)

International Bank of Azerbaijan issues loan to Iran

JUNE 12 2016 (The Conway Bulletin) – International Bank of Azerbaijan, the country’s largest lender, will issue a $500m loan to Iran for the construction of the Rasht-Astara railway section, part of a rail link from Qazvin to Astara, around the southern shore of the Caspian Sea. The total cost of the Rasht-Astara segment is projected to be $1.1b. The countries of the South Caucasus have been quick to engage Iran in business since sanctions were lifted earlier this year.

ENDS

(News report from Issue No. 285, published on June 17 2016)

Kazakh oil revenues fall

JUNE 15 2016 (The Conway Bulletin) – Kazakh officials said production of oil and gas makes up around 17% of the country’s GDP, a proportion eight percentage points lower than in 2015. The fall in oil prices has impacted both feasibility and profitability at Kazakhstan’s oil and gas fields. This is an important measure of the impact of the drop in oil price on Kazakhstan’s economy.

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(News report from Issue No. 285, published on June 17 2016)

Kazakhstan begins constructing Shymkent city

JUNE 13 2016 (The Conway Bulletin) – Kazakhstan’s government said it has started construction work at Shymkent City, a new urban development outside Shymkent, in the south of the country. The government will share costs with local investors and plans to deliver the project in 2020. Shymkent is Kazakhstan’s third-largest city. The government wants to stimulate the economy through major building schemes.

ENDS

(News report from Issue No. 285, published on June 17 2016)

Editorial: Kazakhstan’s financial stimulus

JUNE 17 2016 (The Conway Bulletin) – It’s been a tough year for Kazakh President Nursultan Nazarbayev, perhaps one of the toughest. The economy has flat-lined, worrying investors and locals, who have seen jobs disappear and the value of their tenge savings fall.

Unprecedented anti-government protests swept across Kazakhstan in April and May and in June gunmen alleged to have had links to radical Islamists in Syria attacked targets in Aktobe, killing several people.

Mr Nazarbayev has already staged a parliamentary election, a favourite tactic of his to shore up support. This worked only momentarily. Now he has had to spend big. He’s chucked $712m at the economy in a Keynesian attempt to breathe life into it and create jobs and wealth.

Will it work? It’s unclear. He’s picked small and medium-sized companies and house building to target. These are good targets. Mr Nazarbayev is looking to help out ordinary Kazakhs directly. And it’s the same message with the house-building.

Of course, though, there are serious pitfalls. The plan could be badly implemented, money wasted or stolen.

ENDS

(Editorial from Issue No. 285, published on June 17 2016)

Kazakh President orders $712m economic stimulus

ALMATY, JUNE 15 2016 (The Conway Bulletin) — With economic activity in Kazakhstan faltering, President Nursultan Nazarbayev ordered his government to spend 240b tenge (around $712m) on supporting small and medium-sized companies as well as building thousands of new houses.

Mr Nazarbayev is under increasing pressure to shore up his support by boosting the economy against a 50% fall in the value of the tenge, rising unemployment and inflation. In April and May anti-government protests swept across the country in the most widespread anti-government challenge to Mr Nazarbayev’s 25-year rule.

The Presidential press service said the cash would come from the Republican budget, a phrase that Kazakh civil servants use to refer to Kazakhstan’s sovereign wealth fund.

ENDS

(News report from Issue No. 285, published on June 17 2016)

Emigration in Kazakhstan increases

JUNE 10 2016 (The Conway Bulletin) – Kazakhstan’s Statistics Committee said that immigration into Kazakhstan decreased by 25%, while emigration out of the country increased by 16% in the first four months of the year, highlighting a rapid outward pressure for Kazakhstan’s population. Net outflow measured 3,521 people. It did not give a reason for the high outflow but it may be connected to the poor economic conditions.

ENDS

(News report from Issue No. 285, published on June 17 2016)

Turkmenistan fails to pay salaries

JUNE 13 2016 (The Conway Bulletin) – Employees of Turkmenistan’s state-owned oil and gas companies said they have not received salaries for months, the opposition Alternative News Turkmenistan website reported. Previous reports had said that state employees had not received salaries and had been forced to accept state bonds instead.

ENDS

(News report from Issue No. 285, published on June 17 2016)

Georgia’s C.Bank cuts rates

JUNE 15 2016 (The Conway Bulletin) – Georgia’s Central Bank cut its key interest rate by half a percentage point to 7% to combat slowing inflation. In April, the Central Bank cut its key rate for the first time in three years to 7.5% from 8%. The Central Bank has said that it wants to push its interest rate down to around 5% – 6%, described as the country’ neutral rate, after raising it last year to defend its lari currency.

ENDS

(News report from Issue No. 285, published on June 17 2016)

Russia’s Gazprom to invest in Kyrgyzstan

JUNE 6 2016 (The Conway Bulletin) — Russian PM Dmitri Medvedev said that state-owned gas company Gazprom will invest around $1.5b in Kyrgyzstan’s energy infrastructure and that it will cancel export duty on oil and oil products. Mr Medvedev made the statement while in Bishkek on an official visit. Oil and petroleum products make up 51.9% of Kyrgyz imports from Russia.

ENDS

(News report from Issue No. 284, published on June 10 2016)