SOFAZ has no plan to increase deposit in IBA
Baku, Azerbaijan, Oct. 12
By Maksim Tsurkov – Trend:
Azerbaijan’s State Oil Fund (SOFAZ) does not plan to increase deposit volume in International Bank of Azerbaijan (IBA) or to place deposits in other banks, said the SOFAZ CEO Shahmar Movsumov at a press conference in Baku Oct. 12.
According to him, in conformity with the fund’s rules, SOFAZ can place up to 5 percent of total amount of assets in domestic market.
“Currently, our assets amount to $35.82 billion. The fund has placed a deposit of $1 billion in the IBA. This means that we are able to place up to $500 million more, but it is not planned yet. We do not plan to place deposits in other banks of Azerbaijan,” said Movsumov.
SOFAZ was established in 1999 with assets of $271 million.
Based on SOFAZ’s regulations, its funds may be used for construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
SOFAZ’s main goals include: accumulation of resources and placement of the SOFAZ assets abroad to minimize the negative effect on the economy, the prevention of “Dutch disease” to some extent, securing the accumulation of funds for future generations and supporting the current social and economic processes in Azerbaijan.
Follow the author on Twitter: @MaksimTsurkov