Tag Archives: economy

Azerbaijani economy to shrink

FEB. 23 2016 (The Conway Bulletin) – The Economist Intelligence Unit (EIU) said that it was likely Azerbaijan’s economy would contract in the first quarter of 2016. This would be the first time since the last quarter of 2011 that Azerbaijan’s economy has contracted. For an economy to be considered to be in recession, GDP needs to shrink for two consecutive quarters. The main factor in Azerbaijan’s poor economic outlook is the consistent low oil prices.

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(News report from Issue No. 269, published on Feb. 26 2016)

 

Kyrgyz businesses say the odds are stacked against them in the EEU

BISHKEK, FEB. 25 2016 (The Conway Bulletin) — Kyrgyz farmers and exporters of agricultural products have said that the Eurasian Economic Union (EEU), a group centred around the Kremlin that was supposed to boost its members’ economies, has undermined their businesses by exposing them to unfair competition.

The insight collected by The Conway Bulletin’s correspondent in Bishkek, undermines claims by President Almazbek Atambayev that joining the EEU in August was a positive move for Kyrgyzstan.

Sergey Ponomarev, head of the business lobby group AMTSS and a former PM adviser, said that cheaper Belarusian goods had hit Kyrgyzstan’s key export market in neighbouring Kazakhstan.

“In Belarus, prices for animal feed are largely subsidised by the state, which makes their products cheaper on the Kazakh market,” he said. Mr Ponomarev said that the Belarus government subsidises its farmers’ animal feed, something the Kyrgyz government doesn’t do.

Data released by Kyrgyzstan’s state statistics committee last month showed that in 2015 exports of clothes fell by 50%, fruit and vegetables exports fell by a third and tobacco exports by 28%.

This has partly to do with the worsening economic conditions in the region but also because of the more competitive export markets created by the EEU.

Tilek Toktogaziyev, the owner of a greenhouse in Bishkek. which sells various fruit, vegetables and berries, said: “Local farmers cannot trade their vegetables, and some of them have stopped farming altogether.”

Previously, business owners have complained of extra red tape after joining the EEU but they hadn’t complained of excessive competition.

One business owner, though, was more positive. Dastan Omuraliev, the manager of Organic, a company producing fruit juices, said: “With entering the Eurasian Economic Union, it became easier to pass our goods through the Kazakh border.”

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Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 269, published on Feb. 26 2016)

 

Electricity price to rise in Armenia

FEB. 25 2016 (The Conway Bulletin) – Armenia’s Public Services Regulatory Commission (PSRC) approved a 1.5b dram ($3m) investment in its Soviet-era nuclear power plant Metsamor. Also at the press conference, the PSRC chairman, Shiraz Kirakosyan, said the controversial issue of raising electricity prices would be revisited in April. Last year proposed electricity price rises triggered street protests.

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(News report from Issue No. 269, published on Feb. 26 2016)

 

Uzbek companies fail salaries

FEB. 19 2016 (The Conway Bulletin) – Companies in Uzbekistan are failing to pay staff their full salaries, eurasianet.org reported quoting figures from a state agency that showed fines totalling $500m being handed out for failing to pay salaries on time. This could be, eurasianet.org reported, a sign that worsening economic conditions are hitting Uzbekistan.

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(News report from Issue No. 269, published on Feb. 26 2016)

 

Kazakh companies struggle with bills

FEB. 12 2016 (The Conway Bulletin) – Kazakh companies are struggling to pay for the electricity they are using because of a general downturn in the economy, the deputy minister of energy Bakhytzhan Dzhaksaliyev told media. His views are another indication of the problems that Kazakh companies are facing as they try to counter the worsening economic conditions.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

S&P downgrades Kazakhstan’s sovereign debt

FEB. 17 2016 (The Conway Bulletin) – Ratings agency Standard & Poor’s downgraded Kazakhstan’s sovereign debt ratings to BBB- from BBB because of the long-term low cost of oil. Standard & Poor’s also downgraded Saudi Arabia, Brazil, Bahrain and Oman at the same time. It said that oil accounted for 20% of Kazakhstan’s GDP.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Uzbekistan suspends Khamkorbank

FEB. 16 2016 (The Conway Bulletin) – Uzbekistan’s Central Bank said it had suspended commercial lender Khamkorbank’s licence to trade in foreign currencies for six months due to unspecified violations of banking rules. The World Bank’s IFC and the Netherlands’ state-owned FMO both own stakes in Khamkorbank, 14.5% and 15% respectively.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Economic woes take Tajikistan

FEB. 17 2016 (The Conway Bulletin) – The amount of cash flowing into the Tajik government’s coffers is slowing, media reported quoting the ministry of finance. It said, without giving specifics, that in January, it only hit 87.7% of its target inflow. Tajikistan has been heavily hit by the worsening economic conditions across the region. Remittances from Russia, a vital source of income, have fallen by 50%.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

EBRD finances Kazakh road

FEB. 18 2016 (The Conway Bulletin) – The European Bank for Reconstruction and Development (EBRD) said it is giving Kazavtozhol a $103m loan to widen an 80km stretch of road in southern Kazakhstan on the main south-north highway. The EBRD has been an important driver of infrastructure projects in former Soviet Central Asia since the collapse of the USSR in 1991.

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(News report from Issue No. 268, published on Feb. 19 2016)

 

Azerbaijan’s CBank increases rates

FEB. 15 2016 (The Conway Bulletin) – Azerbaijan’s Central Bank raised its key interest rate for the first time since 2011 to try to bolster its ailing currency. It raised its key interest rate to 5% from 3%. The manat has lost 50% of its value over the past year as oil prices fall. Oil is Azerbaijan’s key export.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 268, published on Feb. 19 2016)