Consolidated budget surplus at AZN 1.1bn (US$ 0.7bn) in 1Q16
Azerbaijan’s consolidated budget posted AZN 1.1bn surplus in 1Q16, compared to AZN 0.6bn deficit in 1Q15, as revenues increased marginally (+2.4% y/y to AZN 4.5bn), while expenditures fell significantly (-32.6% y/y to AZN 3.3bn). The growth in revenues was driven by an increase in non-oil tax revenues (+3.6% y/y to AZN 1.2bn), customs committee receipts (+21.9% y/y to AZN 0.4bn), and non-state budget revenues (+3.6% y/y to AZN 2.5bn, including SOFAZ revenues). Oil tax revenues were down 39.0% y/y to AZN 0.3bn.
On the expenditure side, social spending was up 3.3% y/y to AZN 1.4bn, while other state budget (mainly capex) and non-state budget expenditures were down (-57.4% y/y to AZN 1.2bn and -6.8% y/y to AZN 0.7bn, respectively).
Central Bank reserves up 1.0% m/m in March 2016
Azerbaijan Central Bank reserves increased 1.0% m/m to US$ 4.1bn in March 2016, the first increase in the last eight months. The Central Bank did not intervene on the FX market in March as demand was met by the State Oil Fund, which sold US$ 482.3mn. On April 4, 2016, the Central Bank bought US$ 0.4mn in the open auction.
Banking sector stats in the red in February 2016
In February 2016, banking sector assets in Azerbaijan fell 2.8% m/m to AZN 32.8bn (+14.7% y/y), as the loan portfolio contracted 4.2% m/m to AZN 19.7bn (-2.0% y/y) and non-loan items fell 0.6% m/m to AZN 13.1bn (+54.2% y/y). The downward trend in household deposits persisted in February, falling 6.5% m/m to AZN 8.1bn (+1.8% y/y). Banking sector gross capital contracted 0.2% m/m to AZN 3.6bn (-16.3% y/y).
