Azerbaijan expands sources of financing of State Debt Guarantee Fund

Business Materials 1 December 2017 13:56 (UTC +04:00)
Azerbaijan expands sources of financing of State Debt Guarantee Fund

Baku, Azerbaijan, Dec. 1

By Anvar Mammadov – Trend:

The free balance of the unrealized gain of the Central Bank of Azerbaijan has been included in the State Debt Guarantee Fund to secure debts received under the state guarantee, according to the amendments to the Law on State Debt adopted Dec. 1 at a plenary meeting of the Azerbaijani Parliament.

At present, the funds in the fund are accumulated through:

- funds allocated from the state budget;

- a one-time uncompensated fee, received from the main borrower to provide a state guarantee;

- revenues to the state budget on re-agreements concluded between legal entities – principal and repetitive borrowers and the relevant executive authority, and contracts concluded with intermediary banks (agents) in connection with the use of loans;

- part of the costs saved during the year, and envisaged in the state budget in connection with servicing the public debt and others;

- income from the management of funds received by the State Debt Guarantee Fund;

- other sources not prohibited by Azerbaijan’s legislation.

The changes to the Law “On State Debt” have been prepared in connection with the changes introduced in the Law “On the Central Bank of Azerbaijan”.

As of July 1, 2017, the volume of Azerbaijan’s foreign public debt amounted to $7,172.6 million (12,208.5 million manats), which accounts for 18.9 percent of the country’s GDP.