State Oil Fund of Azerbaijan not experiences difficulty due to global crisis

Oil&Gas Materials 26 February 2009 18:24 (UTC +04:00)

Azerbaijan, Baku, Feb. 26 / Trend , E.Ismayilov/

The global financial crisis affected activity of the State Oil Fund of Azerbaijan (SOFAZ) only in view of its income cut, SOFAZ Head Shahmar Movsumov said on Feb. 26.

"The State Oil Fund does not have any difficulty due the global financial crisis. The SOFAZ held a conservative and protective position by foreknowing the crisis," Movsumov said. "Therefore, the crisis only affected the fund's incomes."

Movsumov said that at present many countries' funds has lost billions. There are funds which devalued by 30 percent, but the SOFAZ completed 2008 with income worth $300 million.

"Therefore, there will not be any problems with financing projects and it will be implemented as part of the budget," Movsumov said. "The SOFAZ's budget will be approved soon."

The SOFAZ's funds were deposited in high qualitative securities.

"We speak about securities of the government, international organizations, World Bank, Asian Development Bank, European Bank for Reconstruction and Development and these securities can be solved at a high price at any time," Movsumov said.

Although the stock market has problems, but it is absence in the segment chosen by Azerbaijan, he said.

"This segment has the lowest risks. If today necessity arouses, Azerbaijan can exchange $10 billion deposited in securities into money," Movsumov said.

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