Press Review 07/19/2016

Creation of industrial parks, the constitutional changes, obtaining foreign loans, shortage of medicines, and the problem of small business insurance are the leading topics of today's press.

The official Azerbaijan newspaper published an article titled "The first and largest in the Caucasus chemical industrial park", which refers to the development of Sumgait Chemical Industrial Park, established in 2011. Its territory is under construction of infrastructure buildings and it will locate 35-40 enterprises, where 10 thousand people will be provided with permanent jobs.

Residents of the park will be exempt from profit, land and property taxes and the VAT on equipment brought within seven years. The first investor in the park is LLC Azertechnoline. In its structure there are factories of steel pipes, plastic products and technical equipment. The products of these companies will provide not only the domestic market, but will be also exported.

Azadlig published comment by the PFPA leader Ali Kerimli on the alleged changes to the Constitution.

 The changes relate to prolonging the President’s rule from five to seven years, the creation of vice-presidency, granting the President the right to dissolve the Milli Majlis, the appointment of early presidential elections, and the removal of the age limit for the president and deputies.

On his Facebook page Ali Kerimli called these changes legitimizing the supreme power. He believes the President is trying to do the family power constitutional.

Echo published an article entitled "Pharmacies do not have the necessary medicines." In this context, people increasingly turn to the Internet, where 80% of the drugs are false. In Azerbaijan, consumers increasingly begin to complain that they cannot find drugs in local pharmacies.

According to local experts, the Ministry of Health of Azerbaijan has not quite correctly understood the order of the head of state to reduce drug prices. Cheaper analogues of drugs are supplied to the market, but they do not inspire confidence in the population. Recall that in late June, during a meeting of the Tariff Council the prices of 2,557 medicines were approved. In general, to date, the Council approved the wholesale and retail sales prices for 9,632 or 99% of drugs that have passed state registration.

 Novoye Vremya published an article entitled "The government again started talking about external credits." The government again started talking about external credits. Just a few months ago, the government assured us that it does not need any credits. The Minister of Finance Samir Sharifov, commenting on the fact that Azerbaijan has appealed to the IMF and the World Bank for financial assistance in the amount of $ 4 billion, noted that the country has a small external debt and a sovereign fund with reserves of 34 billion dollars and does not need such assistance. "The International Monetary Fund might provide Azerbaijan with loans at interest rates below market rates. This is not about aid to the economy, but about financing - the possibility to obtain cheap financing." Along with this, Samir Sharifov said that to finance its share in the project Southern Gas Corridor Azerbaijan is negotiating with the World Bank, the European Bank for Reconstruction and Development and the Asian Development Bank for loans and guarantees in the amount of $ 5 billion. He added that Azerbaijan is able to finance its stake without the support of international financial institutions.

Bizim Yol writes about the problem of lending farmers. According to the farmer Sahib Aliyev, the problems arise as a result of damage caused by natural disasters. Insurance companies refuse to pay the insurance. The deputy director of the business structure Arif Jahanghirov notes that there are risks in the agricultural sector. After the precipitated hail the insurance company refused to pay insurance. Azerbaijan has no legal mechanism for credit insurance.