...

Azerbaijani State Oil Fund increases investments in financial market funds by almost 10 times

Oil&Gas Materials 8 July 2015 09:28 (UTC +04:00)

Baku, Azerbaijan, July 8

By Maksim Tsurkov - Trend:

The investments in the financial market funds of the State Oil Fund of Azerbaijan (SOFAZ) as of 2014 exceeded 816.3 million manat compared to more than 84 million manat in 2013,
a consolidated report on SOFAZ's financial activity as of 2014, posted on the company's website, says.

The report on SOFAZ's financial activity has been audited by PricewaterhouseCoopers Audit Azerbaijan.

According to the report, the investments in BlackRock ICS-Institution Liquidity Funds plc totaled 550.1 million manat (compared to 84 million manat in 2013), while in BNP Paribas Global Liquidity Funds plc - 262.2 million manat (there were no investments in 2013).

According to the report, SOFAZ's bank deposits amounted to nearly $1.02 billion in 2014 compared to $ 841.56 million manat in 2013.

The deposits are mainly concentrated in four Turkish banks. The deposit increased from 313 million manat to 355.034 million manat in Türkiye İş Bankası A.S. İstanbul in 2013, up to 309.16 million manat (from 131.16 million manat in 2013) in T.C. Ziraat Bankası A.S., up to 263.29 million manat (from 109.23 million) in Akbank T.A.S, İstanbul. But it decreased up to 84. 24 million manat (from 209.1 million manat in 2013) in Türkiye Garanti Bankası AS. The remaining 7.85 million manat are concentrated in the subsidiary bank of the International Bank of Azerbaijan in Russia - "IBA-Moscow".

The State Oil Fund was created in 1999 and its assets were equal to $271 million that time.
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.

The official exchange rate is 1.049 AZN/USD July 8.

Edited by CN

follow the author on Twitter: @MaksimTsurkov

Tags:
Latest

Latest