Tweet
EURASIANET: FALL OF OIL PRICES HITS RESERVES OF AZERBAIJAN'S CENTRAL BANK: AUTHORITIES HAVE NOT PREPARED PEOPLE FOR HARD TIMES
19:47 23/12/2014 >> POLITICS
With Brent crude oil, the benchmark for the oil market, now hovering
around $60 a barrel, Baku might well have something to fear. In an
interview with Russia's Rossiya-24 TV channel earlier in December,
President Ilham Aliyev admitted that falling oil prices could have
a negative impact on the government's budgetary plans, reports
informational - analytic portal EurasiaNet.
As noted in the article one-third of the 2015 budget is slotted for
investment projects; 20 percent of those investments are slated to
fund a presidential pet project, the May 2015 European Olympic Games
in the capital, Baku, economists estimate. Aliyev, however, stated
that infrastructure projects could be reduced, if need be.
The industry generates the most economic activity outside of the energy
sector, noted economist Samir Aliyev, editor-in-chief of the Economic
Forum Magazine, an analytical monthly. "If the government halts such
projects now, it will leave lots of people unemployed," he predicted.
As it is noted in the article, where the price will go in the coming
weeks is hard to predict. What is certain is that the Azerbaijani
government's margin for expansive spending is slim.
In comments to EurasiaNet, Oil Fund spokesperson Jamala Aliyeva
confirmed that "annual transfers and financing of strategic projects
...
may cause [a] deficit SOFAZ budget for 2015" as world oil prices
decline.
Economist Samir Aliyev claims the Azerbaijani Central Bank's reserves
already have been impacted, too, writes the EurasiaNet and adds
that the Bank did not respond to a request for comment in time for
publication.
According to economist Natig Jafarli it was necessary to fight
corruption, diversify the state budget revenues, encourage small and
medium enterprises; however, the government never did that.
"For those who already struggle to make ends meet in Azerbaijan,
lower oil prices are a source of unease. Salman Guliyev, 74, who sells
candies in one of Baku's backstreets, worries about what higher prices
will mean for his ability to support his disabled wife and himself,"
the portal writes.
Source: Panorama.am
19:47 23/12/2014 >> POLITICS
With Brent crude oil, the benchmark for the oil market, now hovering
around $60 a barrel, Baku might well have something to fear. In an
interview with Russia's Rossiya-24 TV channel earlier in December,
President Ilham Aliyev admitted that falling oil prices could have
a negative impact on the government's budgetary plans, reports
informational - analytic portal EurasiaNet.
As noted in the article one-third of the 2015 budget is slotted for
investment projects; 20 percent of those investments are slated to
fund a presidential pet project, the May 2015 European Olympic Games
in the capital, Baku, economists estimate. Aliyev, however, stated
that infrastructure projects could be reduced, if need be.
The industry generates the most economic activity outside of the energy
sector, noted economist Samir Aliyev, editor-in-chief of the Economic
Forum Magazine, an analytical monthly. "If the government halts such
projects now, it will leave lots of people unemployed," he predicted.
As it is noted in the article, where the price will go in the coming
weeks is hard to predict. What is certain is that the Azerbaijani
government's margin for expansive spending is slim.
In comments to EurasiaNet, Oil Fund spokesperson Jamala Aliyeva
confirmed that "annual transfers and financing of strategic projects
...
may cause [a] deficit SOFAZ budget for 2015" as world oil prices
decline.
Economist Samir Aliyev claims the Azerbaijani Central Bank's reserves
already have been impacted, too, writes the EurasiaNet and adds
that the Bank did not respond to a request for comment in time for
publication.
According to economist Natig Jafarli it was necessary to fight
corruption, diversify the state budget revenues, encourage small and
medium enterprises; however, the government never did that.
"For those who already struggle to make ends meet in Azerbaijan,
lower oil prices are a source of unease. Salman Guliyev, 74, who sells
candies in one of Baku's backstreets, worries about what higher prices
will mean for his ability to support his disabled wife and himself,"
the portal writes.
Source: Panorama.am