Tag Archives: economy

Kazakh mortgage holders protest

FEB. 2 2016 (The Conway Bulletin) – Around 50 mortgage holders protested in Almaty because they said it was not possible to repay their debt after a devaluation of the tenge. This was the third protest by mortgage holders against banks this year, a rare sustained level of public discontent in Kazakhstan. The tenge has lost around 50% of its value. Last year, the Kazakh government gave banks $130m to refinance mortgages but protesters have said that more needs to be done. Analysts have said that one of the biggest issues the Kazakh government faces is growing consumer debt.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Kyrgyz business blames EEU for poor outlook

FEB. 5 2016, BISHKEK (The Conway Bulletin) — Frustrated Kyrgyz businessmen and company owners are blaming a worsening economy on joining the Russia-led Eurasian Economic Union (EEU) last year.

The criticism of the EEU, whether it is accurate or not, is a major problem for Kyrgyzstan’s leadership which dragged the country into the trade bloc despite deep-rooted unease from ordinary Kyrgyz. Also in the EEU are Russia, Kazakhstan, Belarus and Armenia.

In Bishkek, Azamat, who was selling cars, said Kyrgyzstan had aligned itself with the wrong countries.

“While we are in the Customs Union we will have nothing to develop,” he said.

The Customs Union is the old name for the EEU, which analysts have said was dreamt up by the Kremlin to extend its political control.

Western sanctions and a collapse in oil prices have tipped Russia’s economy into a recession. It has cancelled overseas projects, including a hydropower plant in Kyrgyzstan, and remittance flows from Kyrgyz workers in Moscow have fallen by around 40%. Inflation is rising in Kyrgyzstan and economic growth rates are being cut – a familiar story across the region.

Emil Umetaliev, a former Kyrgyz economy minister who now owns a travel company, told The Conway Bulletin that the EEU has been a major hindrance to small and medium sized companies, rather than the help that had been promised.

“The Eurasian economic union tends to organise countries’ interdependence on resources,” he said. “It does not encourage small and medium enterprises to develop and does not have a friendly investment climate.”

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Azerbaijan revokes another banking licence

FEB. 2 2016 (The Conway Bulletin) — Azerbaijan’s Central Bank revoked the licence of Texnikabank, one of the country’s largest lenders, and handed back a licence to NBCBank after it said it was looking at a possible merger with a bigger rival.

The moves are part of a wider plan by the Azerbaijani Central Bank to tighten and strengthen Azerbaijan’s commercial banking sector.

The Central Bank said Texnikabank, one of Azerbaijan’s 10 largest banks by assets, did not comply with the minimum capital requirement of 50m manat ($31.3) and the capital adequacy ratio. Texnikabank became the seventh bank in Azerbaijan to lose its licence in the past few weeks.

It later handed NBCBank back its licence after it said that it had entered into negotiations with KredoBank and ParaBank about a possible merger.

Another commercial bank, Caucasus Development Bank, said it intends to merge with Gunay Bank and Atrabank.

Azerbaijan is trying to deal with the fallout from a sharp drop in the price of oil, its main export. This has hit its economy and its currency, the manat, putting increasing pressure on the banking sector.

There are currently 37 commercial banks operating in Azerbaijan.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

Exchange booth volumes in Kazakhstan

JAN. 29 2016 (The Conway Bulletin) – The volume of sales of US dollars at kiosks in Kazakhstan rose by $600m in December to $1.7b, media quoted government data as showing. The data underlines the lack of confidence that Kazakhs have in the tenge. It has lost half its value in the past 12 months, a drop linked to a fall in oil prices. The 52% rise in US dollar sales in December was likely due to a sudden rise in tenge’s value.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Kyrgyz CBank should cut spending, says IMF

FEB. 4 2016 (The Conway Bulletin) – Kyrgyzstan’s Central Bank needs to slow its interventions in the currency market in order to avoid depleting its reserves, the IMF said at the end of a mission to Bishkek. The IMF had been on a fact-finding mission ahead of a meeting in April when Kyrgyzstan hopes to extend its borrowing. Its Central Bank has been buying som heavily to support its value.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Tajikistan pays remittances in somoni

FEB. 3 2016 (The Conway Bulletin) – Tajikistan’s Central Bank ordered all remittances sent from Russia to be paid out in the local somoni currency. The Central Bank said the move was designed to support the somoni. It has lost around a third of its value over the past few months. Remittances to Tajikistan, vital to the economy, are down. Russia is the main source of remittances.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Kazakhstan raises interest rate

FEB. 1 2016 (The Conway Bulletin) – Kazakhstan’s Central Bank raised interest rates by 1 percentage point to 17%, its first monetary policy move for three months. The Kazakh tenge has been sliding in value and the Central Bank has at times appeared powerless to stop this. It has slowly increased interest rates but to limited effect.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Kazakhstan releases activist

FEB. 1 2016 (The Conway Bulletin) – Serikzhan Mambetalin, a Kazakh opposition activist, was freed from prison after issuing an apology for inciting ethnic hatred. Mambetalin and his colleague, Ermek Narymbayev, were jailed at the end of January. Mambetalin’s lawyer told RFE/RL that his appeal process was still ongoing. The Kazakh authorities have clamped down on the country’s beleaguered opposition as the economy has worsened.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Food prices inflate in Kazakhstan

FEB. 1 2016 (The Conway Bulletin) – Annualised food price inflation in Kazakhstan measured 11.6% for the 12-months to the end of January, the country’s statistics service said. The data highlights just how fast prices have risen in Kazakhstan. It devalued its currency last year, forcing up prices and salaries.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)

 

Armenia’s population sinks below 3 million

JAN. 29 2016 (The Conway Bulletin) – Emigration from Armenia shrunk its population below 3m for the first time since the 1970s, a psychologically-important threshold and a statistic that highlights a population outflow trend across Central Asia and the South Caucasus.

Armenia’s statistics agency said that the population fell in 2015 by 12,000 people to 2,998,600 people — the lowest level since 1977.

It’s also more evidence of a trend which has seen Armenia’s population shrink by 36,000 in the past five years and by 643,000 since 1991 when it became independent from the Soviet Union.

Armenia has large diaspora populations in France, Russia, the United States and across the Middle East. Most of the outflow is driven by people looking to join relatives in these countries and boost their job prospects.

One of the biggest problems for Armenian policymakers is that most of the people leaving Armenia are young and well-educated. This puts pressure on Armenia’s system with its aging population.

In 2013, the government ordered the State Statistics Committee to investigate the causes and results of this declining population.

There has been some inflow into Armenia over the past few years with ethnic Armenians who had previously lived in Aleppo, Syria, fleeing a civil war.

The Armenian government has accepted around 16,000 refugees from Syria.

ENDS

Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 266, published on Feb. 5 2016)