Volume of transfers of State Oil Fund of Azerbaijan to budget amounts to nearly $38 billion

Oil&Gas Materials 3 August 2012 17:53 (UTC +04:00)

Azerbaijan, Baku, Aug.3 /Trend E.Ismayilov/

The total amount of transfers from the State Oil Fund of Azerbaijan (SOFAZ) to the state budget amounted to 29.772.3 billion manat as of July 1, 2012, the State Oil Fund said on Friday.

The transfers into the state budget amounted to 4 592.3 million manat in the first half of the year. The volume of transfers provided in the expenditure part of SOFAZ budget for 2012 amounted to 9905 million manat.

SOFAZ assets increased by 9.6 percent as of July 1, 2012 compared to the beginning of this year ($29.8 billion), amounting to $32,666 million.

State Oil Fund was established in 1999 and at that time its assets amounted to $271 million.

Based on 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, as well as the non-oil sector of the country. At the moment, a number of important projects in irrigation and transportation are financed at the expense of the funds.

The main purpose of the fund is the accumulation of funds and placement of its assets abroad to minimise the negative impact on the economy, preventing a 'Dutch syndrome' to ensure savings for future generations and maintain the current socio-economic standard in the country.

Official exchange rate on Aug.3 is 0.7855 AZN/USD