Azerbaijan, Baku, Nov. 3, /Trend, A.Akhundov, E.Ismayilov/
Over the next five years, the assets of the State Oil Fund of Azerbaijan (SOFAR) could reach $50 billion, head of SOFAR Shahmar Movsumov said to AzTV state television.
"If the oil prices and expenses of the Fund remain at current levels, the State Oil Fund can accumulate up to $50 billion. And these funds are not only accumulated in the Fund, but also they are efficiently managed," said Movsumov.
Over the past three years, the resources of SOFAR have increased 10 times. So far, Azerbaijan has gained about $40 billion from oil revenues, and half of these funds - about $20 billion - is stored in the SOFAR.
"Given the fact that in the next 15 years, oil revenues amount to about $ 200 billion, then when you save half of these revenues, we will have revenues of $ 100 billion," - said Movsumov.
"Given that over the next 15 years, oil revenues will amount to about $200 billion, if to save half of these revenues, we will have revenues of $100 billion," said Movsumov.
According to him, due to increased revenues from management of Fund's assets, in the future, the level of transfers to the Public budget can remain at current levels due to revenues from asset management. As a result of October, SOFAR has received $1 billion from the asset management up to now.
"With a minimum profitability on assets placed at 5 percent, after 15 years we can reach the level of $6 billion income from asset management per year. If we continue to adhere to these principles and criteria, after some time the government of Azerbaijan will be able to keep a constant level of transfers at the expense of revenues only from the management at current levels," said Movsumov.
The Fund's assets at the time of its creation in 1999 amounted to $271 million.