Media Review for April 30, 2020

The pandemic situation, losses from falling oil prices, the reason for the high cost of loans, and the likelihood of devaluation are the topics of today's media.

The newspaper Azerbaijan continues to write about the situation with the pandemic of the Corona Virus, noting the success in combating the pandemic in Azerbaijan.

Azerbaijan is among the countries with the lowest number of infected people, however, the weakening of the quarantine regime does not mean a refusal to comply with hygiene standards and other restrictions, since the danger has not yet passed.

Müsavat.com discusses Azerbaijan’s losses from the collapse in oil prices. Experts say revenues are falling much faster than declining oil prices.

In 2019, the average annual cost of exported Azerbaijani oil was $ 67.5, and from each barrel the income of each of the parties (state + oil company) amounted to $ 52.

This year, under the previous scheme, the profit can be only $ 7, that is, 5 times less than a year ago.

Bizimyol.info discusses the reasons for the high cost of loans, and especially the big difference between deposit interest and credit interest.

The main factor that forms interest on loans is the discount rate of the National Bank. Although, in other countries this is not so, experts say.

 If in Europe mortgage loans are issued at 2%, then in Azerbaijan they are issued under 4%. In Azerbaijan, consumer loans are issued at 30%, and car loans at 20%, but nowhere else in the world are there such interests, experts say. At the same time, foreign banks are not allowed in Azerbaijan.

Yeniçağ.az discusses the impact of the Corona Virus and the decline in oil demand for the national currency. If oil does not rise in price within a month, then it will be wrong to restrain the manat, experts say. This means the reality of the third manat devaluation.