Global crisis not to affect Azerbaijani pensioners

Business Materials 15 December 2008 18:28 (UTC +04:00)

Azerbaijan, Baku, Dec.15 / Trend , U.Ismayilova/ Inflation is not expected to rise in Azerbaijan in the first half of 2009. On the contrary, the country will experience deflation, but that will not affect the moving forces of rise in basic pensions," head of the State Social Protection Fund Salim Muslumov said on Dec.15. "This is natural in a situation of recession, which is now seen around the world," he said. According to Muslumov, prices in Azerbaijan are rising mainly due to inflation import, but prices for foreign goods fall in a global crisis. For this reason, deflation is very beneficial for retirees, said the head of the Fund. "In 2009, the basic pension in Azerbaijan is expected to rise only once. But the situation will be re-examined in the first half of 2009 depending on the level of inflation and because of the situation resulting from the global processes," Muslumov said. Currently, basic pension in Azerbaijan is AZN 75, but is expected to comprise AZN 80 from next year. In 2009, 65,000 people will become pensioners, while 38,000 people will be excluded from the pension system for various reasons.

According to official reports, inflation totalled 21.6% in Azerbaijan in January to October. As a result of 2008, inflation is expected to make up 15-16% and 12-14% in 2009.

On Dec.15, exchange rate totalled 0.805 AZN/USD.

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