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Azerbaijan May Refuse from Indirect Subsidy if Public Utilities Tariffs Increase

Business Materials 10 October 2006 13:29 (UTC +04:00)

The Azerbaijani Government does not consider it practical to refuse current terms of indirect subsidizing. Samir Sharifov, the Azerbaijani Finances Minister, said that the indirect subsidies can only be refused if the tariffs for electricity and gas are set in the amount which will be reimbursed to the companies' expenses supply. It is necessary to have wide margin rates for the maintenance of these public utilities.

The International Monetary Fund (IMF) also recommended that the Government cut the amount of subsidy and eliminate private subsidizing.

For the moment the Government prefers to cut the amount of subsidy and next year it is planned to put 330 mln. manat into the Public Budget for Azerenerjy against the 438.5 mln. manat in 2006.

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