NBA regards conversion of budgetary currency remittances at the expense of public budget expenses as expedient

Business Materials 20 February 2006 11:17 (UTC +04:00)

The Azerbaijani government has not taken a final resolution to cover the expenses appeared while conversion of currency remittances to the public budget, Alim Guliyev, the vice chairman of the Management Board of the National Bank of Azerbaijan, said. The NBA proposed to project funds in the public budget in this respect, he added.

Earlier the NBA carried out conversion directly, while in current state of monetary policy it is inexpedient, as the currency reserves are imposed to risks as a result of changes in rates. The international practice offers the variant when the incomes and expenses should be recognized, so it is more expedient to include them in the public budget, Guliyev noted. In case of positive resolution of the problem the expenses for conversion can be covered at the expense of reserve fund, the use of which will be implemented at the decree of the Cabinet of Ministers.

Due to unsettlement of the issue of expenditure liabilities the NBA temporarily ceased the conversion of currency remittances of the public budget. The tax remittances to the treasury in foreign currency are implemented by oil companies, and sub-contractors involved in oil contracts. The contracts provide for it. However, late this year the NBA carried out conversion of the rest $113m, including 15m pounds.