SOFAZ savings reach 30% of revenues
Baku, Azerbaijan, Nov. 19
By Maksim Tsurkov - Trend:
Over the past 15 years, savings of the State Oil Fund of Azerbaijan (SOFAZ) have grown considerably, and 30 percent of funds received are allocated today for these purposes, the director of the Budget forecasting and projects department at SOFAZ Mushvig Bayramov said.
He made the remarks during a workshop for reporters on "The State Oil Fund of Azerbaijan: the management of funds and investments."
"In the period of high oil prices, the SOFAZ applied the pessimistic scenario pricing, creating conditions for a larger volume of savings," said Bayramov. "If one looks at the history of SOFAZ budget execution, in 2008 savings amounted to 60 percent, in 2009 - 36 percent, in 2010 - 48 percent, in 2011 - 35 percent and in 2012 - 24 percent. Currently, the level of savings is 30 percent."
One of the main functions of the State Oil Fund is to stabilize the macroeconomy, and in the period of low revenues from the sale of energy resources, additional burden falls on this structure, according to the department.
"This function is carried out through transfers to the state budget," said Bayramov. "At present, the stabilizing function of the State Oil Fund actively manifests itself, and SOFAZ acts as a buffer that protects the economy from the negative impact from the outside."
As of October 1, 2015, SOFAZ assets reduced by 6.38 percent compared to early 2015 ($37.1 billion) and were estimated at $34.74 billion.
SOFAZ was established in 1999 with assets of $271 million.
Based on 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.
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