Tag Archives: economy

Food prices in Georgia rise

MARCH 4 2015 (The Bulletin) – The price of staple foods in Georgia is rising, media reported. Interpressnews.ge said cooking oil, buckwheat, sugar, salt and other goods have all increased in price because of the devaluation of the Georgian lari. Economists have been warning that weakening economic conditions could trigger inflation.
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(News report from Issue No. 222, published on March 11 2015)

SOCAR plans Eurobond

MARCH 6 2015 (The Bulletin) – Azerbaijan’s state energy company SOCAR plans to issue a Eurobond by the end of March, the company’s CEO Rovnag Abdullayev said. Mr Abdullayev said SOCAR was launching the Eurobond because of the slide in oil prices over the past six months or so which have hit the company’s profits.
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(News report from Issue No. 222, published on March 11 2015)

Remittance data to Uzbekistan shows drop

MARCH 10 2015 (The Bulletin) – Remittances to Uzbekistan from Russia dropped by 10% in 2014, media reported quoting a survey by the Russian analytical agency TMT and the CONTACT money transfer system.

While these figures are not official, they do add credence to the picture of tumbling economies in Central Asia and the South Caucasus because of a faltering Russian economy.

Importantly, reports said that analysts expected remittances from Russia to fall by around 25% this year. This will affect most Central Asian and South Caucasus countries, especially Kyrgyzstan, Uzbekistan and Tajikistan which rely heavily on the flow of cash from Russia.

Proportionally, remittances make up a smaller proportion of the national income in Uzbekistan. In practice, though, it is a vital economic lifeline for many ordinary people.
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(News report from Issue No. 222, published on March 11 2015)

Kyrgyzstan-bound FDI dries up

MARCH 6 2015 (The Bulletin) – According to a recent publication by the Kazakhstan/Russia-funded Eurasian Development Bank (EDB), foreign investment in Kyrgyzstan in 2014 measured only $187m, down by 70% from 2013.

In 2013, the Central Asian country received over $623m in foreign direct investment (FDI), mainly from China, Russia, Britain, and Canada.

The EBD said the macroeconomic downturn which began in early 2014 was the main reason for the reduction of foreign activity. The recurring threat of nationalising the gold mine at Kumtor, together with monetary issues and galloping inflation, are also all factors.

The Kyrgyz government has tried to remedy the situation by increasing interest rates above 10% and protecting the national currency, the som, from the financial strains common throughout the region. Although it has performed better than the rouble, the som has lost over 20% against the dollar in the past six months.

FDI is a lifeline for countries like Kyrgyzstan, which rely on remittances from migrant workers abroad and capital injections from foreign investors.
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(News report from Issue No. 222, published on March 11 2015)

Kazakhstan speaks up against off-shoring

MARCH 6 2015 (The Bulletin) – At a Senate hearing in Astana, chairman of the ministry of finance’s revenue committee, Daulet Yergozhin, said the country was going to impose new measures against off-shoring cash.

This is important — if new legislation actually appears — as the issue of Kazakhstan’s wealthy getting their cash out of the country while poorer sections of the population suffer during an economic downturn could turn political.

A study published last month by Alexander Cooley and Jason Sharman, two academics, analysed the channels through which the Kazakh elite amassed “spectacular fortunes” in Western financial centres.

Mr Yergozhin wasn’t responding to these accusations. Instead he said Kazakhstan was working with Switzerland and Liechtenstein to reduce the flow of capital out of the country.

“Already this year, we are planning to put barriers against the movement of capital [to offshore locations] and we will start seeing the results of this policy early next year,” media quoted him as saying.

Kazakhstan has been looking was to bring capital back into the country. Last year it introduced an amnesty for people which repatriated cash. It has said that this amnesty has so far attracted $1b back into Kazakhstan.
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(News report from Issue No. 222, published on March 11 2015)

Georgia CBank wants loans restructured

FEB. 25 2015 (The Conway Bulletin) – Georgia’s Central Bank wants commercial banks to present plans to restructure US dollar loans to help them cope with the drop in the value of the lari. An estimated 60% of banks’ loans are held in foreign currencies making them more expensive to service.
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