Media Review - February 13, 2019

The situation with the documentation in the municipalities, the impact of the discount rate on loan interest, the likelihood of closing several banks, and the fight against artificially high prices are the topics of today's media.

The website Yaporg.az writes about a report in Parliament on the issue of administrative control over the activities of municipalities.

The report says that 72,535 municipal acts passed the examination, which is 12% more than last year. 2,403 acts were deemed not to comply with legal regulations, 979 acts were destroyed, and 1,031 were changed.

During the year, an attempt to illegally transfer 5,921 hectares of municipal land was prevented.

In respect of 143 officials, administrative offenses protocols were drawn up.

On the activities of municipalities 2,247 appeals were received, of which 1,988 were considered: 82 appeals were satisfied, and 118 are under consideration. According to 18 materials, criminal proceedings were instituted.

The website Oxu.az writes about high interest rates in the banking system, which are not reduced even after the Central Bank reduces the discount rate from 15% to 9.25%.

The share of the Central Bank in the loan portfolio of the country is 400 million manat. This volume is too small and does not affect the overall situation. That is, the situation is such that the reduction by the Central Bank of the discount rate cannot affect the decrease in bank interest rates on loans. This requires serious reforms not only in the financial market.

The newspaper Yeni Musavat writes about artificially high prices. At a meeting of the parliament on February 12, MP Ali Masimli expressed concern about rising prices, which are rising despite orders from the President.

The website Modern.az writes about the possible closure of two more banks, discussing this situation with expert Natig Jafarli. According to available information, the other day the Financial Markets Supervision Authority will announce its decision on this issue. Moreover, the heads of both banks have already been sent official letters, since the financial resources of these banks have been exhausted. -0----