...

Azerbaijan to pursue balanced policy on foreign loans: minister

Business Materials 21 May 2009 17:05 (UTC +04:00)

Azerbaijan, Baku, May 21 / Trend , I.Khalilova/

The Azerbaijani Finance Ministry continues to focus on management of external and internal debt, Finance Minister Samir Sharifov said at a meeting of the permanent parliamentary commission on economic policy to discuss a report on the state budget for 2008.

"In 2008, foreign loans drawn under a state guarantee was fully repaid," the minister said.

As for Jan. 1, 2009, loan agreements worth $6.574 million were signed to draw loans from international finance institutions and foreign credit institutions in order to support economic reforms in the country, as well as to finance priority projects. Of this amount, some $3 billion was used from this amount. The share of external debt to GDP is 6.4 percent.

"We hold under the control strategy of foreign borrowing, but I do not think that we should not attract loans from abroad," the minister said. "We must not only attract foreign loans, but also use internal investment. In so doing, we intend to pursue balanced policies and find the best option."
 
Sharifov considers that under the global financial crisis, those countries that are more prepared for this situation have debts at the regulated level and on the other hand, they have sufficient financial reserves.

"So, I think that Azerbaijan in this direction had a very cautious policy and implement a strategy of borrowing, which enabled them to retain the regulatory level," the minister said.

The minister said another indicator of the crisis is that not only the public debt, but also corporate debt should be the focus of attention.

"For example, the main problems of Kazakhstan and Russia were not associated with the state debt, but borrowing of corporate sector," Sharifov said.

External borrowing of the country's banking is currently reaching $2.7 billion.

"In 2008, the Central Bank and government could manage the situation, which enabled successfully end the year, but in 2009, we will closely follow the situation and intend to take flexible measures. All of these issues are under the president's supervision and according to his instructions, we have already taken steps that do not allow to feel the impact of the crisis, as it occurs in other countries," Sharifov said.

Do you have any feedback? Contact our journalist at: [email protected]

Latest

Latest