...

SOFAZ says assets level for 2016 remains same

Economy Materials 19 November 2015 12:54 (UTC +04:00)
The State Oil Fund of Azerbaijan (SOFAZ) plans in 2016 to keep the volume of assets at the level of 2015
SOFAZ says assets level for 2016 remains same

Baku, Azerbaijan, Nov. 19

By Maksim Tsurkov - Trend:

The State Oil Fund of Azerbaijan (SOFAZ) plans in 2016 to keep the volume of assets at the level of 2015, SOFAZ Risk Management Department's head Bahruz Bakhramov told reporters Nov.19.

"Despite the fact that the budget expenditures of the SOFAZ for 2016 exceed revenues, our main task is to prevent the decrease of the fund's assets," said Bakhramov. "The following year, efforts will be directed at stabilizing the level, and we expect to maintain it at the current level - nearly $35 billion."

The official exchange rate for November 19 is 1.0506 AZN/USD.

"At the same time, transfers to the state budget in the future will remain at the same level or will be lowered in order to keep the level of assets," he said.

The transfers of the State Oil Fund of Azerbaijan (SOFAZ) to the state budget are expected to reach 6 billion manat or 4.388 billion manat (42.2 percent) less in 2016 than in 2015. SOFAZ's revenues are projected at 6.71 billion manat in 2016, which is 3.53 billion manat (34.5 percent) less than the forecast for 2015. SOFAZ's expenditure is projected at 8.2 billion manat, which is 33.4 percent (4.1 billion manat) less than the expected volume in 2015.

The State Oil Fund was created in 1999 and its assets were equal to $271 million that time.
The assets of SOFAZ decreased by 6.38 percent and amounted to $37.74 billion as of October 1, 2015, compared to over $37.1 billion in early 2015.

Under SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

The main goals of the State Oil Fund include: accumulation of resources and the placement of the fund's assets abroad in order to minimize the negative affect on the economy, the prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.

---

Follow the author on Twitter: @MaksimTsurkov

Tags:
Latest

Latest