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Samir Sharifov: the State Investment Company to give 5-7 year credits

Business Materials 1 April 2006 10:41 (UTC +04:00)

Works to create the Azerbaijan Investment Company, public corporation, created by the March 30 decree of the Head of State on Additional measures to encourage investments will start in April. The company `s founding capital will be formed by the State Oil Fund of Azerbaijan (SOFAR). Azerbaijan is now doing all possible to boost the entrepreneurship and this has reflected in the president `s decree, SOFAR executive director, Samir Sharifov told journalists, Trend reports.

Besides, no changes will be made into the privatization policy, as the work of the company will not contradict the current privatization program. Investments will have an urgent character. Sharifov does not exclude that the State will have some share in the Company.

Non-oil sector will receive priority in the investment. Different criteria will be used to choose the enterprises, especially their importance for the Azerbaijani economy and their profitability. Commercial principles will be taken as a base, Sharifov said.

Although, he did not consider as necessary to invest into trade sector, as only long term projects will be given priority. To bring them to life businessmen will need additional means, which will be provided by the company.

Credits will be provided for 5 to 7 years term. The major aim of the state is to give an impetus to the entrepreneurship development; however, it doesnt mean that all private companies should become property of the state. Stocks will be produced to attract additional finances. The company will work independently and will also be involved in co-financing, he said.

The investments minimal limit will be defined by the Observation Council, but hardly will it be a small amount, SOFAR head added.

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