Caspian Business Journal

Weekly Roundup: February 8-14, 2010

This weeks latest business news from the region includes:  Kazakhstan intervening in the valuation of the Tenge, ice cream concern in Turkmenistan receives EBRD loan,  Armenia announces $20 million dollar tourism plan as well as developments at the Central Bank, and finally Georgian satellite TV controversy.

Kazakhstan Central Bank to Intervene in Currency Valuation

Kazakhstan’s Central Bank Chairman, Grigory Marchenko, recently discussed the banks efforts to effect currency valuations in the tenge.  The tenge began the year losing value but with the rise in oil prices over the last month the tenge has appreciated considerably.  Silk Road Intelligencer has reported:

“The National Bank of Kazakhstan bought over $2.4 billion in January and early February as it sought to stem the appreciation of thetenge, central bank chairman Grigoriy Marchenko said on Tuesday (Feb 9).  The tenge had devalued by 18 percent last February but has been strengthening since November, as oil prices rebounded and Kazakhstan’s economic performance in 2009 was better than expected”   Read more here.

Turkmenistan Ice Cream Factory Secures EBRD Loan           

Privately held ice cream manufacturing concern, Salkyn, located in the Mary veleyat (region) of Turkmenistan announced it had secured a $1.2 million loan from the EBRD.  The funds will be used by Salkyn to increase distribution networks, purchase new refigeration equipment and support brand development. 

According to EBRD Director for Central Asia Honma Masaru, “Supporting the development of the private sector in Turkmenistan is one of the EBRD’s key priorities. We are pleased to provide the much needed financing for further development of Salkyn in the current market conditions.”  Read more at Cbonds.info.

Armenia Announces $20 million Tourism Push                                    

The Armenian Ministry of Tourism has announced big plans for opening up the country to greater numbers of tourists and getting them to some of Armenia’s more interesting but hard to reach destinations.   Read more.                                  

Armenia Central Bank Updates                                                                              

The Central Bank of Armenia is indicating that the Armenian economy is on the mend.  According to reporting from Eurasianet.org

“The bank expects modest economic growth, between 0.5 to 2 percent in 2010, the Arminfo news agency reported. The forecast is based on the government’s efforts to stimulate domestic demand, as well as on the relative stabilization of world markets. The construction sector, one of the key drivers of Armenia’s economic growth, will continue to decline, but at a slower pace, Arminfo reported.”

Georgia Satellite Row Continues

Europe’s leading satellite operator, Eutelsat Communications, and Georgia’s Russian language television station Caucasus 1 remain unable to break the deadlock over resuming broadcasting.  Eutelsat announced before last week that it had refused to host Georgian Public Broadcaster’s (GBP) Russian-language First Caucasian Channel, after initially agreeing and even broadcasting the first week of programming.

According to Civil.ge:  Gia Chanturia, GPB general-director, who was holding negotiations with Eutelsat in Paris, said the operator failed “to give any logical explanation of its decision.”

Gakheladze said that GPB would launch talks with three other satellite operators on hosting of the First Caucasian, but declined to specify the companies. The First Caucasian Channel was launched early this month, initially over the internet and it became available on satellite since January 15th. To continue reading, visit Civil.ge here.