Press Review 02.10.17

The situation with the construction of the TANAP gas pipeline and inflation ahead of wage growth are the topics of today's press.

The Azerbaijan writes about the role of TANAP and the progress of the construction of this gas pipeline, noting that more than 82% of the construction has already been completed.

The gas produced at the Shahdeniz field will be transported 1,850 km throughout Turkey. The pipeline is planned to pump 16 bcm of gas, of which 6 bcm will be delivered to Turkey, and 10 bcm to Europe. It is planned to increase the volume to 31 bcm. The gas pipeline is fully planned to be commissioned in the second half of 2018.

The Echo published an article titled Azerbaijan before Choice: Saving Banking System or Keeping AZN Rate. The banking system of Azerbaijan can be saved in two ways. Either the Central Bank should lower its discount rate to 2-3%, or a whole state program to save the banking sector should be adopted.

According to some sources, initially six billion manat will be enough for this process. Not for nothing all courts are overflowed with banking cases today. Citizens cannot repay loans, so almost all cases go to courts. But if the government goes to one of two steps to save the banking system of the country, the manat exchange rate may be shaken and fall, and the Central Bank of Azerbaijan considers the priority of preserving the AZN rate rather than the position of banks.

The Novoye Vremya published an article on the growth of inflation. Despite the relative stabilization of the national currency"s exchange rate, the growth of prices for consumer goods continues. Non-food products increased by 0.1%, services to the population - by 0.2%, and food products - by 0.3%.

Average annual price growth in August was 14%. Food products for the year went up by 18.2%, non-food products - by 12.6%, and services - by 9.6%.

According to independent analysts, inflation is much higher than the stated 14%.