Baku, Azerbaijan, Feb. 24
By Ilaha Khalilova - Trend:
An International Monetary Fund (IMF) mission led by the adviser for the IMF Middle East and Central Asia Department, Raja Al Marzouqi will visit Baku on March 4 to hold consultations with the Azerbaijani government on Article 4 of the agreement 'On the creation of the IMF', the IMF Baku Office Head Aghgun Gadirli told Trend on Feb. 24.
These consultations are held on a regular basis annually.
The visit will last till March 17. The prospects and activities aimed at developing Azerbaijani economy in 2014 will be discussed and an overview of the macroeconomic situation in the country will be given during the meeting.
It is planned to hold meetings at the Ministries of Finance, Taxes, Economy and Industry, the State Customs Committee (SCC), the Central Bank of Azerbaijan (CBA), with representatives of the banking sector, etc.
During its last visit to Azerbaijan in November 2013, the IMF mission noted that economic growth in Azerbaijan is at a normal level.
"The average annual economic growth this year is projected at five percent and the inflation rate - within three percent," Al Marzouqi said, stressing that there were positive signals for beginning consolidation of the country's state budget.
Azerbaijan's draft state budget for 2014 envisages some reduction in the non-oil deficit by increasing non-oil revenues. At the same time a high level of government spending reflects a continuation of certain fiscal risks, Al Marzouqi said after the visit.
Nevertheless, the mission supported the authorities' efforts to improve the efficiency of state funds spending and reform in pension system.
IMF recommended CBA continue activities aimed at controlling the growth of consumer lending. Improvement of the classification of banks' assets, settlement of issues regarding guarantees and holding new macro-prudential measures were set as short-term priorities.
IMF also recommended that the Azerbaijani government complete the process of joining the World Trade Organization (WTO) and eliminate barriers hindering the development of competition and improve the management system in order to further improve the business environment.
IMF's World Economic Outlook for October predicted Azerbaijan's GDP growth in late 2014 at 5.6 percent. In 2014 the unemployment rate in Azerbaijan will remain at six percent, according to the IMF's forecasts.
Azerbaijani government forecasts 2014 GDP growth at 4.7 percent. The real GDP growth in Azerbaijan in 2013 stood at 5.8 percent, while the GDP growth in the non-oil sector was 9.8 percent.
Azerbaijan joined the IMF on September 18, 1992. In general, during the period of cooperation Azerbaijan raised IMF loans worth $577.3 million for implementation of six different programs on cooperation as part of the economic reforms.
Cooperation between IMF and Azerbaijan was particularly intensive between 1995 and 2005.
During these years, Azerbaijan often used the consultative and financial assistance of IMF to support the economic programs of the government.
The IMF office was opened in Baku in 1992 and despite the fact that in 2009 its staff was reduced, the fund remains an important partner of the Azerbaijani government.
It should be noted that Azerbaijan's cooperation with the IMF played an important role during the global economic and financial crisis.
Translated by E.A.
Edited by C.N.