Media Review for January 22, 2020

The decrease in water levels in rivers, the reasons for banks not financing the real sector, and the cost of rental housing are topics of today's media.

The newspaper Azerbaijan writes about lowering the water level in the country's rivers. For example, on January 21, the water level in the Kura decreased by 7 cm, and the water use is 100 cubic meters per second. This is below the mandatory norm and is 64%. The Ganykh River level at the Ayrichay point decreased by 1 cm, and the water level in the Araz River in the town of Gyvrag decreased by 2 cm. The article gives examples of water reduction in rivers at various points.

The Oxu.az website writes that banks do not finance the real sector.

In 2019, the National Bank continued its policy of gradual reduction of the discount rate, and at present it is 7.5%.

Why, then, do banks not finance the real sector?

Since last year, lending increased by 16%, including the issuance of business loans. Last year, the money supply increased by 24%, and more than 2 billion manat was transferred to banks.

However, lending to business entities only increased by 11%. When lowering the discount rate, it is very important to immediately reduce the interest rate on loans issued, experts say.

The website Marja.az writes that the social housing project is actually a real business project. According to MP Vahid Ahmedov, prices for such housing are unacceptable for low-income families.

Seven thousand manat is too much for a down payment, Ahmedov said. If these houses seem to be interest-free, then the prepayment should be low. With this approach, people will not be able to buy rental housing, so this issue needs to be reviewed.

According to the expert Natig Jafarli, this housing cannot be considered interest-free, because these same interests are already included in the total cost of housing. All this looks like a business project.

As you know, 331 apartments will be sold through rent.