A meeting of the Working Group, established for assessment of negative impacts of coronavirus pandemics (COVID-19), as well as severe changes in energy and stock markets of the world, determination of economic fields, which are supposed to got damage from pandemics, and preparation of relevant suggestions aimed at decrease of negative effects of the current situation to business environment of the country in the near and medium term of the period, has been held. The meeting has been held in the form of a video conference, press service of the Ministry of Economy told ONA.
Head of the Working Group, Minister Mikayil Jabbarov has informed on the emergent measures, taken under leadership of President of the Republic of Azerbaijan Ilham Aliyev in the direction of prevention of the pandemics. The Minister noted some factors effect national economy in current situation. It is stagnation, observed in the world economy and foreign trade relations, severe changes in oil prices in world energy markets, as well as decrease of economic activity regarding preventive measures, conducted in order to prevent spread of the pandemics. All of these factors reflect itself in several economic field much more.
The Minister Mikayil Jabbarov brought to notice that the Working Group has to implement in a short run a great volume of intensive works in order to determine the areas of activity having been subjected to the greatest damage from the pandemic under the existing situation, as well as the main sectors of economy providing economic growth and employment, to strengthen the country’s economic and financial resilience, and to clarify the areas where the government can take steps and can implement the support measures. Approximately 12 areas of activity exposed to the greatest negative impact at the initial phase have been determined in total including tourism, hospitality, public catering, entertainment, transport, trade, etc.
The minister of economy stressed that the government is ready to take rapid and operative decisions. However, for accurate determination of the damaged areas of activity, firstly, the clear and transparent assessment criteria should be developed. These criteria can bear common and specific character in terms of both economic sectors and subjects (entities).
The situation emerged in various sectors of economy have been discussed and various proposals have been voiced at the video conference. It was noted that for evaluation of the caused damage, it is necessary to profoundly analyze the reports of the entrepreneurial entities and the indicators determined by the state agencies. This damage will also be evaluated through analysis of the financial reports for March, 2020 that will be submitted soon. Currently, all structures of the Ministry of Economy hold meetings with business entities, representatives of the small and medium businesses, public associations of entrepreneurs and the specialized associations.
It was stated during the discussions that in the course of determination of the support measures, the Azerbaijani Government will also give preference to the legal entities and the entrepreneurs who adequately respond to the government’s appeals in the existing situation, not allow for reduction of jobs and salary fund, arrange their activity transparently and demonstrate social responsibility. The provision of support to continuation of economic growth in the country will be covered by the system of complex measures. This system will cover such areas as ensuring of liquidity in the economy, granting of tax discounts and vacations to entrepreneurs, easement of availability of public crediting resources, protection of stability of financial markets, introduction of the targeted state orders’ system, etc.
It was noted at the meeting that the government will settle for taking such forced measures as reduction of economic activeness which could cause shrinkage of economy in a short time in order to protect health of the country’s citizens and ensure security of the population. The government is ready to pay the costs of these measures and sees them as a new development path of economy after prevention of aggravation of the existing situation and spread of the pandemic. The establishment of production and processing sectors satisfying the domestic demand and replacing the import of foreign products and the incorporation of the new production enterprises in these areas will be promoted.
The members of the Working Group have been charged with preparation within 3 days of the proposals related to the necessary criteria and the integrated approach methodology in order to determine the damaged sectors of economy.