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BAKU. August 30, 2010: The open joint-stock company “Bank Silk Way” completed last week the process of increasing an authorized capital by 45%, upping it by 32,19 million AZN (1 AZN is approximately 1.2 USD). Now it is among ten largest banks of the country due to the size of the authorized capital. Recapitalization of the bank has been carried out in the frames of the stocks emission by 9,99 million AZN. Placing of new stocks began on July 23. This process was accomplished in several stages.

The value of stocks has been paid by two shareholders of the Bank: Arzu Aliyeva, Azerbaijani president’s youngest daughter, and Zarifa Hamzayeva, wife of the head of “AZAL” national airline company.

Now each, Arzu Aliyeva and Zarifa Hamzayeva have a blocking (giving the right of veto) package of stocks: 35,6% and almost 11,5 million AZN value. The whole “Silk Way” Holding, which includes the “Silk Way” Bank, was established on the basis of the government owned “AZAL” Airlines Company.

BAKU. August 12, 2010: Head of the Department to produce vegetable reserves in the Ministry of Agriculture Sabir Veliyev spoke about the grain reserves and monopoly in the agricultural market.

Question: What other obstacles are there for the producers?

BAKU. July 28, 2010: It is difficult to manage the resources of the State Oil Fund in a country with no well-established state institutions and a high level of corruption, Inglab Ahmadov, chief of the Public Finance Monitoring Center, told Turan. In order to avoid risks of corruption, we need efficient mechanisms of control – from audit to civilian supervision, the expert claims.

BAKU. July 24, 2010: The countries-producers of great sturgeon’s caviar – Russia, Turkmenistan, Azerbaijan, Iran and Kazakstan – have signed an agreement on the caviar export quota.

AFP reported that till end of February total volume of export from these countries will total 3 tons of caviar.

BAKU. July 19, 2010: Tidewater Inc. is close to a settlement with the Securities and Exchange Commission that would resolve allegations that the marine services company made corrupt payments to customs brokers in Nigeria and tax authorities in Azerbaijan.

BAKU. July 16, 2010: Azerbaijan has to continue and deepen the reforms for rapprochement with EU, said John Kryer, the head of EU mission on negotiations in Baku for Associative Agreement.  He considers that the future agreement will cover all spheres of cooperation. "Azerbaijan is the only country in the South Caucasus which has not joined the World Trade Organization (WTO). Membership in this organization is very important. Without it, we cannot speak about creation of a common trade space," - said Kryer.

BAKU. June 22, 2010: Creation of financial structures and uncontrolled inflow of capital to those structures have become a popular way of money laundering in Azerbaijan.

According to the calculations made by Turan, based on official information, over the last six months, the authorized capital of 11 banks belonging to the government officials has increased by 150 million AZN. Total authorized capital of these banks reached 520 million AZN (1 AZN is aproximately $1.2), or 40% of the authorized capital of all 47 banks in the country. Most of the authorized capital in them consist of direct investments by the stockholders.

The most capitalized are four banks directly or indirectly belonging to close relatives of the ruling family.

BAKU. May 25, 2010: State budget for 2009 was fulfilled with 0.5% deficit GDP, said Samir Sharifov, Minister of Finance of Azerbaijan at the session of the Milli Mejlis on May 25.  "In 2009 the national income totaled 10 billion 325 million 935,100 AZN; expenses totaled 10 billion 503 million 858,800 AZN. Plan on income was fulfilled by 84.8%, on expenses by 85%", Sharifov noted.

BAKU. May 7, 2010: Azerbaijan is ready to commit 50% of the natural gas produced in the country to the Nabucco project, said Ali Hasanov, the chief of the Public Political Department of the Presidential Administration, at 13th Eurasian Economic Summit in Istanbul.

"Azerbaijan attaches great importance to the Nabucco project supported by Turkey. We are ready to send 50% of Azeri gas through Nabucco,” Turkish Zaman newspaper quoted Hasanov as saying.

"Our task is to supply this pipeline with gas; all other questions of concern should be addressed to Italy, Germany, Bulgaria and Brussels,” Hasanov said. "Azerbaijan has done everything necessary for the project’s realization, now it is the turn of the European structures," he said.

BAKU. April 13, 2010: The increase of income from oil has caused a reduced quality of governance, said Gubad Ibadoghlu, head of the Center for Economic Research in an interview with Turan news agency. The absence of the rule of law and an independent court system minimizes both legal and other initiatives in the fight against corruption. Estimates show that in rich oil and gas exporting countries with no democratic system, a 10% increase in oil income causes a 12% increase in corruption, according to Brazil scientists. In their view, 10% increase of oil production reduces the quality of governance by 3%, and increases by 4% the probability of re-election of the country’s leadership.