Baku, Azerbaijan, Dec. 23
By Abbas Akhundov - Trend:
The State Oil Fund of Azerbaijan (SOFAZ) will hold more than $100 million to maintain the liquidity of its assets at a sufficient level to fully ensure cash and other transfers scheduled for the fund's costs in 2014 are met on deadline as happened this year.
The president recently issued a decree approving the priorities of the programme for using SOFAZ's funds for 2014.
SOFAZ will hold $100 million of these funds as short term highly liquid money market tools. This amount may fall below $100 million only for a period up to seven days.
According to the programme for 2014, SOFAZ may transfer up to 60 per cent of the total value of its investment portfolio to the foreign managers as last year. No more than five per cent of the investment portfolio may be transferred to one foreign manager.
The portfolio amount transferred to the treasury of the World Bank as part of Reserve assets management programme (RAMP) must not exceed $500 million.
The projected total cost asan average amount of SOFAZ's investment portfolio for 2014 was set at 27 billion manat. For this year the forecast was formed at 25.2 billion manat, in 2012 - 23 billion manat and in 2011 - 19.4 billion manat.
The official exchange rate is 0.7845 AZN/USD as of Dec. 23.
Translated by NH
Edited by SM