[TID Consulting]

BRANCH OFFICE OF TID CONSULTING LLC IN THE REPUBLIC OF GEORGIA

In the near future TID Consulting LLC is going to register a branch office in the Republic of Georgia.

Branch will offer a range of services in the sphere of accounting, financial, business and legal consulting, tax planning and financial activities, also services on contract law and registration of physical and legal persons. Local and International companies can apply for our services.

We offer our clients quality, confidentiality and reliability of rendered services.

DOING BUSINESS 2009: AZERBAIJAN IS WORLD'S TOP REGULATORY REFORMER; EUROPE AND CENTRAL ASIA LEAD REFORM WORLDWIDE

Azerbaijan leads the world in regulatory reforms to make doing business easier, according to Doing Business 2009—the sixth report in an annual series published by the World Bank and IFC.

Azerbaijan reformed in seven of the 10 regulatory areas studied by the report between June 2007 and June 2008. Its overall rank on the ease of doing business rose to 33 from 97—the biggest jump in one year ever recorded by Doing Business.

“Azerbaijan has achieved impressive and unprecedented results this year following a concentrated reform effort by the Government. By introducing efficient regulations the country encourages creation of new businesses and expansion of the formal sector.

Changes to the labor code made it easier for businesses to create jobs. Azerbaijan also created a second commercial court in Baku, increasing the number of specialized judges.

A new law gives greater protections to minority shareholders. A new unified property registry makes it easier to register property. A new one-stop shop for company registration reduced the number of procedures and halved the time needed for business start-ups. Azerbaijan reduced the tax burden by introducing an online filing and payment system with advanced accounting software systems for calculation of taxes due. It also strengthened investor protections and credit information.

“In 2008 Azerbaijan is the pacesetter not only in the region but worldwide, advancing dramatically in the global rankings on the ease of doing business,

Four of the 10 economies making the most regulatory reforms are in Eastern Europe and Central Asia. The top 10 are, in order, Azerbaijan, Albania, the Kyrgyz Republic, Belarus, Senegal, Burkina Faso, Botswana, Colombia, the Dominican Republic, and Egypt.

2009 PUBLIC BUDGET OF AZERBAIJAN NOT SUBJECTED TO RISK OF OIL PRICE REDUCTION: IMF

There are not risks from the reduction in oil prices in the world markets for the 2009 Public budget of Azerbaijan in the short-term outlook, Valeria Fichera, head of mission of the International Monetary Fund, deputy director of IMF's Middle East and Central Asia Department, said in Baku on Dec. 17. The forecasts of the Public budget for the next year were formed based on the price of oil at $70 per barrel, but now the price in the world markets fell to $45.

“There is not significant risk for the Public budget, since the budget is mainly financed due to the transfers from the State Oil Fund of Azerbaijan, said Fichera. And their amount has been fixed in manat not depending on the oscillation in the oil prices”.

She said that part of the budget, which is directly subjected to the influence of the oil price change, is small.

“Risk for the budget of the country will be in the long-term outlook, if the prices will remain at the level of $30-40 for a period of two-three years. Then it will be necessary to correct the budgetary forecasts. By $40 of oil price, the general budgetary-fiscal situation of Azerbaijan will be positive” said the head of mission.
If the oil price will be above $40, the Oil Fund will continue to accumulate additional resources. By the beginning of 2009, the SOCAR will accumulate more than $10bln, and the transfers of Fund to the Public budget are planned only at the level of $4bln.

She said that deficit of the consolidated budget is not expected under the existing prices, and the resources of the Oil Fund are sufficient for financing the Public expenditures.

According to the estimations of the National Bank of Azerbaijan and Ministry of Finance, 75% of the incomes of budget are protected from the fluctuations in oil prices. Other 25% part of the budget incomes is affected by the oil price change, but the strategic reserves of the country, which exceed $18bln, and also additional reserves in the Public budget make it possible to decrease dependence by means of manoeuvring and taking adequate measures on price change in the world markets.

NATIONAL BANK OF AZERBAIJAN PREDICTS LOWER INFLATION RATE THIS YEAR

Bank expects some decrease in inflation rate as well as more stable macroeconomic situation in the country. The inflation in the country is expected to constitute between 15-17 percent this year, the Azerbaijan National Bank says in its annual report on the results of macroeconomic situation in 2008. The report also indicates that although international organizations predicted 22 percent inflation in 2009, it will be 5-7 percent less. The Bank also expects declining inflation rates as well as stable macroeconomic situation in the country this year.

NEWS