Details added (first version posted at 10:48)
Baku, Azerbaijan, Feb. 12
By Azad Hasanli - Trend:
Azerbaijan is properly tackling its challenges, says Christine Lagarde, managing director of the International Monetary Fund.
The IMF would do its best to assist Azerbaijan in the face of huge economic challenges, said Lagarde, the Nigerian daily newspaper The Punch reported Feb. 12.
Lagarde also said Azerbaijan has been hard hit by about 70 percent oil price decline shock, because its economy depends heavily on oil exports, both in terms of trade, and in terms of revenue.
"Azerbaijan has certainly taken a good fiscal approach, is reassessing spending, is really trying to restore its position, and it is also using the exchange rate as a buffer," she said.
Azerbaijan is currently revising the 2016 state budget taking into account an oil price of $25 per barrel [oil price has been set at $50 per barrel in the approved budget].
As part of the budget revision, its expenditure part will be increased to 16.5 billion manats, and the income part - to 18.3 billion manats.
The government forecasts a deficit of 1.7 billion manats.
Azerbaijan has sufficient foreign exchange reserves. In total, the reserves stand at about $39.14 billion, which play a role of the security buffer.
Azerbaijan joined the IMF in 1992.