Press Review 04/07/2017

The focus of today's press is Azerbaijan's role in international transit projects, the state of the banking sector, and the country's economic indicators for six months of the year.

The Azerbaijan in the article "The shortest way from Beijing to London passes through Baku" writes about the important role of Azerbaijan in the global transport and logistics system.

(Http://www.azerbaijan-news.az/index.php?mod=3&id=125338)

The Echo touches on the problems of the banking sector in the article "Bankruptcy of banks in Azerbaijan is delayed" (http://en.echo.az/?p=60558)

The director of the law firm Akram Hasanov and Partners, head of the law firm Anti-collector, a member of the Bar of Azerbaijan Akram Hasanov believes that to date there are no more than 10 relatively healthy banks in Azerbaijan, and even they need some state support.

"There are small, but more efficient banks in the country. It can be unequivocally said that 2/3 of the current banks will close with time. However, the sooner this happens, the better for the banking system of the country. Today, this system is like a cancerous tumor, which also captures healthy "cells," the expert believes.

In his opinion, Azerbaijani banks are dragging out bankruptcy, and the Financial Markets Supervision Authority for some reason does not recall the license.

The independent economist Fuad Alizadeh believes that while banks will not issue loans to the population at optimal interest rates, there is no reason to talk about the activation of their activities.

The Yeni Musavat sums up the economic results of the first half of the year.

According to the economist Natig Jafarli, a positive result is a reduction in the rate of decline in GDP compared to the same period last year.

In the first half of 2016 the GDP reduction was 1.3%, and this year it was 0.9%.

Concerning the stabilization of the rate of manat to the dollar at the level of 1.7 manat, the expert notes that this was due to a decrease in economic activity, a weakening of the real sector, and a virtual suspension of lending to banks.

The biggest blow to the sector and the whole economy was caused by the International Bank of Azerbaijan. The restructuring of its debts to creditors struck at the country's economic image.

The narrowing of the economy continues, there is no serious change in foreign trade, and a drop in oil prices and production volume is a very alarming signal. Over the past month, oil prices have fallen by 20%. In the second half of the year, negative developments in the economy will deepen, Jafarli believes.