Nemat Aliyev: AZN will continue to depreciate, the credits will go up

«At a meeting of the Cabinet of Ministers we have witnessed a serious discussion of the economic situation in the country, the findings, the analysis of the real situation," said in an interview to «Çətin sual» ( «Difficult question"), Turan expert-ekonomist Nemat Aliyev.

According to him, the government has nothing to say to the people about how  the country has been brought to economy crisis. Macroeconomic indices in 2016 clearly demonstrate the scale of the crisis. Ilham Aliyev only acknowledged that the country's income fell sharply.

"In this case, Ilham Aliyev said that the growth in non-oil sector is 5%, in particular in agriculture - 2.6%," he said. The reliability of these figures even is doubtful. Aliyev drew attention to the fact that  in 2015, investment in non-oil sector amounted to 1.1 billion dollars, but over 11 months of 2016 this figure fell to $500million.

"If there are cuts in investments,  then how the growth in this sector has been achieved? The same applies to agriculture. In  2015 investments in this sector amounted to $360 million, and over  11 months of 2016 the volume of investments was equal to $145 million," said the expert.

"If there is  growth in agricultural production, for what reason we are seeing an increase in prices for these products?  Why does the exports  of agricultural products increase," the expert continued.

This meeting did not give any answers regarding the way out of the crisis.

"The government should be responsible for the current situation. Rising process,  depreciation of the national currency is the consequences of incompetent work of the government. The first reason for this situation is only the government "itself, said the minister. At the meeting, Ilham Aliyev said that the leadership of the country has found a way out of the crisis.

"If they really  have found a way out of the crisis, they should announce this way and announce how the country will overcome the crisis",  the economist said.

In his opinion, Azerbaijan has not developed entrepreneurship, non-oil sector. The main reason for this is corruption in these areas, and as well as the misuse of funds directed to these sectors. People who want to do this are  under pressure from the monopolies. While these problems are not solved, it is impossible to hope for a way out.

Referring to the situation in the banking sector, the expert noted that the government's announcements indicate that the depreciation of the manat will continue.

"Announcements of the Central Bank suggest that this year's loans will be expensive, and many of them are not available. In this case, the banks' profits will fall sharply, and we will see a worse situation of banks ",  the minister said. -71D-