Democratic Forces Require Authorities to Carry Out Radical Reforms

Baku / 12.08.17 / Turan: The National Council of Democratic Forces (NCDF) has laid the blame for the difficult social and economic situation in the country on the authorities.

In the statement adopted, following the results of public hearings on the socio-economic situation in the country, the NCDF demanded that the authorities put an end to criminal activities that paralyze the work of economic structures, make cardinal changes in the management system, destroy the monopolistic-corruption pyramid, improve the investment and business environment, and guarantee law supremacy.

According to the authors of the statement, the authorities only imitate the implementation of economic reforms.

The "strategic road maps" of economic development, praised by the authorities, have become a useless set of documents. For the last four months, the decline in the socio-economic sphere has further deepened.

Over the first half of the year, oil production fell by 1.9 million tons, or by 9%, and natural gas by 800 mcm, or by 5%.

The weakening of economic activity continues in the non-oil sector, and in particular in such areas as mining and processing industries, and construction. The investment and business environment has also deteriorated.

In January-June, investments in the real sector decreased by 422 million dollars or 12%. Foreign investors reduced investment by 10%, and local ones - by 25%.

The crisis continues in the banking sector. For five months of the year, the volume of loans in manats decreased by 637 million, and in dollars - by 418 million.

The total volume of the loan portfolio decreased by 1 billion 650 million manats. At the same time, the volume of problem loans exceeded 1.7 billion manats (12% of the total loan portfolio), which undermines all optimistic hopes for overcoming the banking crisis.

In the first half of the year, foreign trade turnover increased by 10%. However this was achieved due to the growth of prices for oil, oil products and natural gas.

At the same time, the government financed health care expenditures with a deficit of 23%, education - 9.4%, and agriculture - 24%.

The decrease in income from income tax by 18.2% indicates a decrease in the wage fund.

The growth of consumer prices by 14% eloquently testifies to the worsening of the financial situation of the population.

The increase in gasoline prices by 28% on this background demonstrates the loss of the sense of responsibility by the government, the NCDF points out. -03D-