Azerbaijan, Baku, Jan.27 / Trend , E.Ismayilov /
State Oil Fund of Azerbaijan (SOFAZ) expects an increase of assets with up to $40-50 billion in the next two years, Executive Director Shahmar Movsumov said at a press conference reviewing 2009 results.
SOFAZ assets hit 11.966.5 billion manats as of Jan.1, 2010 with an increase of 32.8 percent compared to the beginning of last year. Since its establishment the assets have amounted to $271 million.
"Today, SOFAZ's assets grow very rapidly, in connection to this it is necessary to improve the management system of these funds and bring it to more modern level. In this direction we have already started preparation," Movsumov said.
In 2006, roughly one million dollars were spent for the purchase of a modern management system, Movsumov said.
"SOFAZ is a modern financial institute and its funds are placed at world financial markets. If one manages $100-200 million in the fund, then while bringing the fund's assets to $50 billion, $1-2 billion will fall to one person which is a big risk," the fund's head said.
He said that in connection to that, the fund's staff will expand. Also, the construction of a 23-storey building has begun.
According to SOFAZ's regulations, the funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
In 2001-2009, special attention was drawn to the development of the oil and infrastructure sectors, and the non-oil sector of the country.
At the moment, a number of important projects in the sphere of irrigation and transport are financed at the expense of the funds.
SOFAZ's revenues during its activity exceeded $28 billion.
The main purposes of the fund are: accumulation of funds and placement of the fund's assets abroad in order to minimize the negative impact on the economy; preventing a "Dutch syndrome" to ensure savings for future generations and maintain the current socio-economic processes in the country.
On Jan.27, official exchange rate was 0,8034 AZN/USD.