The Ministry of Finances does not agree with the estimation of the European Bank for Reconstruction and Development (EBRD) on rise in growth pace of inflation to 13% in 2006, Avez Alekperov, the Ministry of Finances, stated in his televised speech at a state television channel AzTV on Friday, Trend reports.
The statement on the estimation was made this week by Anita Tachi, an EBRD expert on Azerbaijan. She said that last year Azerbaijan succeeded to retain inflation in a digit-figure at the expense of the consolidation of manat by the National Bank of Azerbaijan (NBA), as well as retaining the public budget expenses.
The EBRD, WB and IMF cannot say exactly the expected inflation ration in Azerbaijan and the statements by the EBRD are absurd, the Minister underlined.
According to the minister, in 2005 the international financial institutes forecasted the inflation at 15%, while the government succeeded to maintain it at a digit-figure (9.6%). Owing to expected currency revenues the government intends to take measures in the direction of implementation of the investment policy, execution of budget expenses, development of the state securities market. Only over 2 years the securities market grew 2.7 times. The NBA and the Finance Ministry are considering the capacities for expansion of the market in 2006.
Alekperov predicted outflow of $1.2-1.3m from the country for purchase of equipment and different purposes. So, I have suspicions on EBRDs forecasts on 13%-inflation. We always discuss with the IMF an impact of inflation policy, wages, and oil prices on the inflation, Alekperov underlined. In 2006 it will be possible to maintain growth pace of inflation at 8-9%.
Touching upon the consolidation of rates of national currency, which is one of the means used by the NBA for retaining the growth pace of inflation, the minister said that it would be more expedient to maintain the corridor in 5-6%. Rise in the corridor might lead to undesirable outcomes.