Baku, Azerbaijan, May 12
By Azad Hasanli – Trend:
The forecast aggregate value (weighted average volume) of investment portfolio of the State Oil Fund of Azerbaijan (SOFAZ) for 2017 was set at 51.24 billion manats in a decree of Azerbaijan’s President Ilham Aliyev approving main directions of the use of SOFAZ funds and investment policy for 2017.
The forecast for 2016 was at 51.3 billion manats, for 2015 – 28.2 billion manats, for 2014 – 27 billion manats, for 2013 – 25.2 billion manats and for 2012 – 23 billion manats.
In 2017, SOFAZ funds will be mainly used for: financing of some measures related to accommodation and improvement of social and living conditions for refugees and IDPs; transfers to the state budget of 2017; transfers to the Central Bank of Azerbaijan to ensure financial stability; financing of reconstruction of the Samur-Absheron irrigation system; financing of the Baku-Tbilisi-Kars railway project; financing of the state program on education of Azerbaijani youth in foreign countries in 2007-2015; financing of Azerbaijan’s share in the Southern Gas Corridor projects.
Under the decree, the currency structure of SOFAZ’s investment portfolio is as follows: up to 50 percent of assets can be in US dollars, 35 percent in euros, 5 percent in British pounds and 10 percent in other currencies.
Meanwhile, SOFAZ’s investment portfolio can consist of four sub-portfolios: a portfolio of debt instruments and money market instruments – 60 percent of total portfolio value, a portfolio of shares – 25 percent, a portfolio of real estate – 10 percent, and a portfolio of gold – 5 percent.