On the basis of the agreement signed between SOFAZ (State Oil Fund of Azerbaijan) and the Azerbaijan Finance Ministry on August 11, 2006, the Fund has received the State Budget currency allotments to be governed at the amount of over $850 mln. Shahmar Movsumov, Executive Director of SOFAZ, told Trend that part of these funds already came back to the Finance Ministry. The process of money return is going on according to the needs of the State Budget. Up to date, over $400 mln. has been returned.
According to Mr. Movsumov, these funds are also returned in foreign currency, though the possibility on convertation of budget means via SOFAZ was considered previously. The Government did not agree with this mechanism, and now the Finance Ministry is carrying out the convertation at the currency market itself, said the Head of SOFAZ.
The funds are governed depending on the schedule approved by the Finance Ministry. They have been placed in the banks with high ratings and funds with a high liquidity. The level of yield from governing these funds currently exceed 5%.