IMF takes interest in registering of non-guaranteed debts by government in Azerbaijan

Business Materials 12 December 2005 17:24 (UTC +04:00)

The International Monetary Fund (IMF) raised again the issue of keeping the records and monitoring of the loans non-guaranteed by the state, the Finance Ministry told Trend. Such an interest has been displayed by the regional coordinator for Central Asia and Azerbaijan Gulam Azerbaijani who stayed in the country last week. In accordance with the presidential decree on appliance of the law “On the state budget 2005” the proposals were commissioned to prepare on the way to manage and record the loans, allocated without the state guarantee.

In this regard regulation of both the guaranteed and non-guaranteed debts have been included in the draft law “On the state budget”, which is under consideration at the presidential administration.

IMF recommended in its time the National Bank of Azerbaijan (NBA) to keep records and control of the loans, not covered by the state guarantees. Along with this, the draft law does not specify the body to deal with it.

NBA has nothing against assuming these commitments but considers, it needs to be provided with legal rights, as it will be difficult for it to obtain information from the private banks on lendings.

Today the work is not done, although there is a clause in the law �On the currency regulation” under which NBA is to keep records on the non-guaranteed debts. During the talks with the IMF mission on the issue the consensus has been reached. The Finance Ministry thinks, it is enough to have the presidential decree to authorize NBA to keep records and control and NBA will possess the complete information, like the Finance Ministry on the guaranteed debts.