An Issue on Convertation of Currency Revenues to State Budget via SOFAZ in 2007 Remain Open

Business Materials 1 November 2006 17:19 (UTC +04:00)

Currency revenues of the budget at the volume of $450 mln. have been transferred to a special account of SOFAZ (State Oil Fund of Azerbaijan ) on the basis of an agreement signed between SOFAZ and The Finance Ministry of the Country on August 11, 2006, Trend reports. During the today's press-conference, Shahmar Movsumov, Executive Director of SOFAZ said that these funds are managed depending on the schedule confirmed jointly with the Finance Ministry. They have been placed in banks of a high rating and funds of a high liquidity. To date, the level of revenues gained from the management of these funds has exceeded 5 percent

According to Mr. Movsumov, the Azerbaijani Government is still discussing an issue on convertation of budget means via SOFAZ. But this issue still remains open, since it will be considered within Budget Package 2007.

Within these discussions, a possibility on transferring the currency, which the State Budget is to receive in 2007, to SOFAZ is considered as well. In its part, the Fund's will perform transfers in manats. That will allow protecting the State Budget from conjecture changings of oil prices in the World markets.