SOFAZ announces revenues for entire period
Baku, Azerbaijan, Oct.24
By Emil Ismayilov - Trend:
As of October 1, 2014 general revenues of the State Oil Fund of Azerbaijan (SOFAZ) amounted to about 91.13 billion AZN, the fund told Trend Oct.24.
The official exchange rate for October 24 is 0.7843 AZN / USD.
The total amount of the State Oil Fund budget expenditures amounted to nearly 59.26 billion AZN, and extra-budgetary fund expenditures reached 2.61 billion AZN.
"Cash receipts in the balance sheet of SOFAZ are recorded in AZN, though all the fund's assets and instruments, in which the fund invests, are concentrated in the foreign currency," the State Oil Fund said. "In order to diversify the portfolio, assets of the fund are kept in dollars, euros, pound sterling and other world currencies. The exchange difference can bring fund both revenues and expenses, but it does not affect the real value of total assets of SOFAZ."
The assets of SOFAZ as of October 1, 2014 exceeded $29.26 billion, the fund said.
The State Oil Fund receives funds from the sale of oil and gas projects and income from the management of the fund's assets.
SOFAZ was established in 1999 with assets of $271 million.
Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main purposes of the fund are the accumulation of funds and the placement of these fund's assets abroad to minimize negative trends in the economy by preventing "Dutch disease".
This ensures savings for future generations and the continuity of the country's current socio-economic standard.