Tag Archives: economy

Manat stabilised, says Azerbaijan’s Bank chairman

MAY 9 2016 (The Conway Bulletin) – Elman Rustamov, chairman of Azerbaijan’s Central Bank, said the manat currency will maintain a stable exchange rate with the US dollar for the rest of the year, dismissing rumours of further depreciation. The Central Bank devalued the manat in February 2015 and later, in December, ditched the currency peg to the US dollar. It is now worth half its Jan. 2015 value.

ENDS

(News report from Issue No. 280, published on May 13 2016)

Loan plugs Kazakh government’s deficit

MAY 11 2016 (The Conway Bulletin) – Kazakhstan’s ministry of finance said it has agreed to take a $1b loan from the World Bank’s International Bank for Reconstruction and Development to plug a budget deficit that has opened up since an economic downturn hit the region. Finance minister Bakhyt Sultanov, said the loan will have a 20-year maturity and will be used to pay for government expenses in 2016.

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(News report from Issue No. 280, published on May 13 2016)

Tajik bank asks EBRD for emergency loan

DUSHANBE, MAY 9 2016 (The Conway Bulletin) — In the most serious indication so far that Tajikistan’s banking system is beginning to buckle under the pressure of this prolonged economic downturn, Tojiksodirotbank admitted it was on the brink of a liquidity crisis and that it had applied to the EBRD for a loan to save it.

Representatives of TSB, as Tojik- sodirotbank is commonly known, flew to London to meet with EBRD officials on the sidelines of its Annual General Meeting.

“Tojiksodirotbank, one of the country’s systemically important banks, needs financial assistance in the current situation,” TSB said in a statement.

Neither TSB, nor the EBRD commented on the size or the timing of the loan.

In March, Tajikistan’s Central Bank invited EBRD representatives to propose solutions to a worsening financial situation. The Tajik som has fallen heavily in value against the US dollar and all-important remittances are down by around 50% because a recession in Russia has wiped jobs for migrants.

This year nervous savers have been withdrawing money from banks they fear are on the edge of bankruptcy.

Also, the proportion of so-called non-performing loans (NPLs) in the system has skyrocketed. The proportion of loans that were 60 days or more overdue grew from 9.9% at the end of 2013 to 24% at the end of 2014, according to official data. Media has also said that this figure may be nearer 33% now.

Earlier this year the IMF said that TSB and its largest competitor, Agroinvestbank, were exposed to increased credit risk and could become insolvent.

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(News report from Issue No. 280, published on May 13 2016)

Strong GDP growth, says Turkmen President

MAY 7 2016 (The Conway Bulletin) – Turkmen president Kurbanguly Berdymukhamedov said that the country’s GDP was 6.3% higher in January-April 2016 than the same period in 2015. The EBRD has predicted Turkmenistan’s GDP will increase by 6.5% this year and 7.1% in 2017. Last year, Mr Berdymukhamedov devalued the manat currency by 19% and imposed austerity measures, phasing out free gas supplies and other subsidies.

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(News report from Issue No. 280, published on May 13 2016)

Electricity output increases in Turkmenistan

MAY 10 2016 (The Conway Bulletin) – Turkmenistan’s ministry of energy reported that in Jan.-April 2016, the country produced 7.6b kWh of electricity. This is 1.6% higher than the same period last year. Turkmenistan is looking to expand electricity exports to neighbouring Iran and Afghanistan and plans to construct 15 gas turbine power plants by 2020.

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(News report from Issue No. 280, published on May 13 2016)

Prices in Armenia fall, again

MAY 11 2016 (The Conway Bulletin) – Annualised inflation in Armenia for April measured -1.9%, the Statistics Committee said, the fifth consecutive month it has recorded price drops. Food prices shrank by 4.5%, while non-food prices remained stable. Price deflation is a sign of slow economic activity, a direct consequence of the economic malaise that has hit the South Caucasus and Central Asia. Remittances from Russia, which play an important role in these economies, have dried up.

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(News report from Issue No. 280, published on May 13 2016)

Georgian wine exports grow

MAY 11 2016 (The Conway Bulletin) – Georgia exported 11.6m bottles of wine in 2015, an increase of 45% from 2014, its national wine agency said. Total revenues earned from wines increased by 15% to $26.9m. Wine is an important export for Georgia. It has been heavily marketing its wine and its status as one of the original wine-making countries. Russia, Ukraine and Kazakhstan are the biggest markets for Georgian wine.

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(News report from Issue No. 280, published on May 13 2016)

Western Uzbekistan faces salary problems

MAY 11 2016 (The Conway Bulletin) – Last year, teachers in Nukus, in western Uzbekistan, received chickens, potatoes and carrots in lieu of their salaries because the authorities had run out of cash to pay them, RFE/RL reported. Wage arrears and liquidity shortages have become commonplace in Uzbekistan. Last week, teachers in Tashkent complained that they had not received salaries for two months. An economic downturn has hit Uzbekistan and its neighbours in Central Asia hard.

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(News report from Issue No. 280, published on May 13 2016)

Editorial: Uzbek state salaries

MAY 6 2016 (The Conway Bulletin) – Paying salaries on time to its armies of state employees is one of the Uzbek government’s central tasks. If it doesn’t, it means there are some serious cracks in the system.

According to news reports, arrears for salaries in Uzbekistan now extend to a couple of months for teachers in schools and colleges.

There is a heavy economic crisis blowing through Central Asia and the South Caucasus, but where is the government’s money in Uzbekistan?

Some sources say it is being funnelled into short-term construction and renovation projects ahead of the summit of the Shanghai Cooperation Organisation coming up in June.

Last year, a leaked letter sent from the Central Bank said that the budget was short of around $620m.

Reports from Turkmenistan, another reclusive country, said that the government had been paying salaries in kind or with vouchers to some of its employees for months.

These are tough times for many Central Asians.

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(Editorial from Issue No. 279, published on May 6 2016)

Workers complain in Kazakhstan

MAY 5 2016 (The Conway Bulletin) – A union of metal workers at the ArcelorMittal Temirtau factory in central Kazakhstan said it would appeal to the Prosecutor General against the company’s plans to cut benefits and, ultimately, lay off workers. According to Zhaktau, the union, several workers have had their full-time contract changed into freelance project work. The union also said the company plans to sack 700 workers by the end of the year. ArcelorMittal Temirtau did not comment.

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(News report from Issue No. 279, published on May 6 2016)