ICF to Hold Consultations in Azerbaijan on Improvement of State Debt Management
Azerbaijan, Baku, 31 October / corr Trend I.Khalilova / The mission of International Monetary Fund (IMF), headed by Verner Rika, regional coordinator of project, will visit Azerbaijan on 16 November. The main objective of the visit is to carry out survey of project on regional technical assistance and to expand the opportunities within the frames of improvement of management of state debt and development of securities market, the fund's Baku office said.
The consultations with Azerbaijani Ministry of Finances and Baku Stock Exchange (BSEX) will continue by 21 November.
The project is developed on the basis of experience of previous project on management of state debt and will expand development in the beneficiary countries through assisting to development of the securities market.
The fund on provision of foreign borrowings under state guarantee was set up first within the frames of 2008 public budget. AZN 50mln was allocated from public budget to form the fund. Average annual volume of funds in the fund should not be lower than 25% from the expected one in the period of joint volume of financial liabilities on loan allotted under state guarantee and debt.
Foreign arrears should be paid at the expense of funds gathered in the fund, in case of problems with discharge by main borrower, danger of default and necessity of fulfillment of obligations by guarantor.
Foreign debts of Azerbaijan reached $2.590mln, or 6.4|% of the Gross Domestic Product (GDP) as of 1 July 2008. The volume of foreign debts increased by 6.1% as compared to the beginning of year.
The relations between the Ministry of Finance and the National Bank of Azerbaijan (NBA) and the turnover and sphere of coverage of governmental securities market are expected to develop within the frames of the IMF project in Azerbaijan. It is also planned to carry out monitoring of securities legislation and provision with recommendations. The project targets to provide the securities papers market with competitive ability and to prepare the management of opportunities and problems, arising while realization of currency policy of the National Bank of Azerbaijan (NBA) with respect to develop the financial market.
Presently, the lion share (96.94%) of deals at BSEX falls on the share of governmental securities, the volume of which has doubled during nine months to AZN 5.8mln.
The regional project of IMF is realized through technical assistance of the Swiss State Secretariat of Economic Issues (Seco). The volume of technical assistance makes up $2mln and the term of realization of the project is three years. The project is carried out by the IMF Office of Technical Management, which is located in Bishkek and intended for Azerbaijan, Kyrgyzstan and Tajikistan. Azerbaijan will receive 30%, out of total volume of technical assistance.
Exchange rate for US dollar is AZN 0.8087 on 30 October
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