Minister of Economy held an online meeting with entrepreneurs

On August 7,  Minister of Economy Mikayil Jabbarov held an online meeting with entrepreneurs. The meeting was attended by senior officials of the Ministry of Economy, President of the Azerbaijan Entrepreneurs Confederation Mammad Musayev, as well as more than 280 entrepreneurs operating in areas affected by the pandemic. The main purpose of the event was to discuss ways to eliminate the negative impact of the coronavirus pandemic on the private sector and the rules of conduct in the business sphere under the new conditions.

Speaking at the meeting, the Minister of Economy noted that although 2020 was a successful start for Azerbaijan, the pandemic, as in all countries, faced new challenges for the national economy, forced restrictions led to weakening economic activity and financial losses for businesses. To minimize the negative impact of the pandemic on the national economy, employment and entrepreneurship, President of the Republic of Azerbaijan Ilham Aliyev has set very serious tasks for government agencies. The Cabinet of Ministers has adopted a wide range of important documents covering programs to support the economy, as well as short- and medium-term business support. Emphasizing that the human factor is at the center of the policy pursued under the leadership of the President, the Minister stressed the importance of measures taken to protect human health, based on close state-citizen solidarity.

Giving information about the negative effects of the pandemic on the economy, the Minister of Economy noted that in the first half of 2020, there was a decline in GDP, and a decline was observed in most economic sectors. It was noted that the revitalization of economic activity in the non-oil sector to prevent threats to the economy, the financing of projects and measures to stimulate the protection of jobs, investment-oriented lending, promotion of private investment, construction and other stimulus measures are among the main goals.

Stressing that the private sector is the leading force in the economy, Mikayil Jabbarov said that in accordance with the instructions of the President, the Cabinet of Ministers has decided to provide new financial support to businesses. According to the decision, in order to minimize the negative impact of the current situation on entrepreneurship and support employment, taxpayers working in areas affected by the pandemic will receive financial support in the amount of one month’s salary, and individual (micro) entrepreneurs will receive 250 AZN. In addition, by the decision of the Cabinet of Ministers from April 1, 2020 to January 1, 2021, entrepreneurs are exempted from leasing state and municipal land, legal entities and individual entrepreneurs (including participants of this category of industrial estates). The Minister of Economy also noted that the tools of business financing have been expanded in order to increase the access of businesses to financial resources, to strengthen state support for areas affected by the pandemic. It was noted that more than 12 million AZN in loans have been approved for a month through the Electronic Credit Platform, which was created to provide entrepreneurs with easy and transparent state-guaranteed loans.

It was noted that in the current situation, society, as well as entrepreneurs must adapt to the new requirements. It is unknown when the pandemic will end. Society must be ready for a new way of life, and entrepreneurs must adapt their business to the conditions. Masks should be worn indoors, facilities should be disinfected regularly, antiseptics should be used, staff should wear masks and gloves, citizens should not be allowed to enter and congested facilities without a mask, and physical distance should be maintained. Stating that the new way of life requires the introduction of digital solutions, the Minister of Economy stressed the importance of expanding the capabilities of remote services. The sooner businesses and service providers get used to the new rules, the more profitable it will be for their business.

Speaking at the meeting, the entrepreneurs noted the negative impact of the situation on their activities, the implementation of new rules in the production and service sectors depends not only on entrepreneurs but also on every member of society. . Emphasizing that business activity will continue in new, different conditions, the businessmen noted that state-business cooperation is more necessary in these difficult times.

The announced e-mail address before the meeting included numerous questions and suggestions from entrepreneurs, as well as additional suggestions during the event. The main part of the appeals is to expand the scope of areas affected by the pandemic, extend tax breaks, set grace periods for tax arrears, provide additional social benefits, and extend state-guaranteed loans, etc. issues.

The Minister of Economy Mikayil Jabbarov answered the questions of entrepreneurs and expressed his views on the proposals. The meeting discussed ways to minimize the impact of the pandemic on the private sector, revive and develop business.