Azerbaijan, Baku / Trend corr I. Khalilova / The Azerbaijani Government paid off $19.5mln on its loans from the International Monetary Fund (IMF) in the first half of 2007, according to the Azerbaijani Finance Ministry. As a result, the total liabilities to the IMF made up $113.5mln by 1 July 2007 on three programs (ESAF, EFF and PRGF). The payments are fulfilled at the expense of currency reserves of Azerbaijan managed by the National Bank of Azerbaijan.
IMF's permanent representation in Azerbaijan has been functioning for nine years' however cooperation with the Azerbaijani Government began in 1992. The IMF began allocating loans in 1995. So far the Fund has allotted loans within the framework of six programs.
Since the cooperation between the IMF and Azerbaijan began, the agreements on six programs have been signed. Three of them have been paid off (STF, Stand-by, and CCFF). As the Azerbaijani Government refused to receive loans in further cooperation, the liabilities for the current IMF loans will not increase.
Some $113.5mln of the total $514mln loans have still to be paid.
Providing currency reserves of $2.2bln, the National Bank will be able to pay off the remaining part of the liabilities in a timely manner. However, IMF loans are rather affordable, and interest payments on them comprise only 1.13%. Profitability of management of the resources made up 5.1%, for this reason the Government does not consider it expedient to wait on paying off the loans.