Concerns grow over threat of poverty rise
The poverty level may rise in Azerbaijan due to the
ongoing world financial crisis, experts have warned, suggesting
taking action to fence off the impact of the global crunch on the
national economy.
The pundits believe that Azerbaijan`s currency reserves kept abroad should be brought back to the country and channeled into the domestic construction and production sectors to prevent deterioration of citizens` living standards. The measure would also reduce the dependence of local banks on foreign shareholders.
Azerbaijan`s fast-growing economy, which is developing in the conditions of free market today, has already sensed the impact of the economic downturn that has hit economies worldwide, causing layoffs and reducing production levels. The slowdown is being caused mainly by the fact that companies operating in Azerbaijan are carrying out vast import and export transactions with other countries.
Nazim Mammadov, a member of the parliamentary commission on economic policy, says the financial crisis is likely to drive up poverty rate in the country. As a way out, he suggested urgently bringing the cash held overseas to local banks, in accord with relevant orders from the president. The measure would also lead to a reduction in interest rates for bank loans.
"Interest rates on credits allocated to the population and companies are quite high, which is causing a weakening of the business climate," the economist concluded.
According to Mammadov, a lion`s share of the funds to be injected back into the Azerbaijani economy should be directed to the domestic construction and production sectors. "In doing so, along with preventing job cuts, suitable conditions will be created for opening new jobs."
The pundits believe that Azerbaijan`s currency reserves kept abroad should be brought back to the country and channeled into the domestic construction and production sectors to prevent deterioration of citizens` living standards. The measure would also reduce the dependence of local banks on foreign shareholders.
Azerbaijan`s fast-growing economy, which is developing in the conditions of free market today, has already sensed the impact of the economic downturn that has hit economies worldwide, causing layoffs and reducing production levels. The slowdown is being caused mainly by the fact that companies operating in Azerbaijan are carrying out vast import and export transactions with other countries.
Nazim Mammadov, a member of the parliamentary commission on economic policy, says the financial crisis is likely to drive up poverty rate in the country. As a way out, he suggested urgently bringing the cash held overseas to local banks, in accord with relevant orders from the president. The measure would also lead to a reduction in interest rates for bank loans.
"Interest rates on credits allocated to the population and companies are quite high, which is causing a weakening of the business climate," the economist concluded.
According to Mammadov, a lion`s share of the funds to be injected back into the Azerbaijani economy should be directed to the domestic construction and production sectors. "In doing so, along with preventing job cuts, suitable conditions will be created for opening new jobs."
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