SOFAR to Intensify Sterilization Functions in 2007

Business Materials 31 January 2007 11:34

The State Oil Fund of Azerbaijan (SOFAR) plans to intensify its activities in the domestic market in 2007, Trend reports.

Shahmar Movsumov, SOFAR Executive Director stated at a news conference dedicated to results and plans for 2007, that the SOFAR budget is forecast to end in surplus, which will enable us to sterilize the income and withdraw from circulation excess dollar mass. These funds will be invested in different profitable financial tools.

Thanks to sterilization we will contribute in the removal of a precondition for Dutch Disease' I do not agree with some experts on the presence of Dutch Disease' in Azerbaijan, which would confirm itself with the absence of economic growth. Nevertheless, there is economic growth in the country at an ongoing high speed, he added.

In 2007 SOFAR's income is projected in the amount of 1,555bln manats, while expenses вЂ" 0.9mln manats. Head of SOFAR is sure that these expectations will be fulfilled, because international experts predict the trend in the rise of oil prices to continue. The year began at the point of $60 per barrel, though the average annual price of oil was set at $50 in the public budget, Mr. Movsumov stressed.