Azerbaijani president approves tripling domestic state debt
Amendments to Azerbaijan's law "On the 2015 State Budget", stipulating an increase in the upper limit of the country's domestic state debt in 2015 by three billion manats, were approved by President Ilham Aliyev's decree Nov. 25.
Under the amendments, the domestic state debt's limit increases from 1.5 billion manats to 4.5 billion manats to finance a number of state projects as part of execution of presidential decrees, dated July 15 and Aug. 7, 2015.
These amendments apply from July 15, 2015.
Additional funds are required for improvement measures in preparation for the privatization of state-owned shares in the International Bank of Azerbaijan, and therefore the Aqrarkredit CJSC issued state-guaranteed bonds.
Prospectus of emission of the guaranteed interest bonds by the non-bank credit organization Aqrarkredit, totaling three billion manats, was registered Sept. 1 by the State Committee for Securities of Azerbaijan.
The bonds have been issued in connection with the transfer of a part of bad assets of the International Bank of Azerbaijan to be managed by the Aqrarkredit.
Thus, these assets will be gradually eliminated from the bank's balance sheet in exchange for liquid funds, to be provided by the Central Bank of Azerbaijan.
The Central Bank has already transferred to the International Bank some two billion manats out of the envisaged three billion.
President Aliyev approves 50x increase in Central Bank's capital
Azerbaijan's President Ilham Aliyev signed a decree to approve the amendments to the law 'On the Central Bank of Azerbaijan' for increasing the bank's authorized capital to 500 million manats.
Currently, the authorized capital of the Central Bank (CBA) is 10 million manats.
The bank's capital is formed by the authorized capital and capital reserves. The capital reserves shouldn't be less than the authorized capital of CBA and are formed by deductions from the profit of the fiscal year.
In accordance with the decree, the Cabinet of Ministers has been instructed to work out proposals within three days on bringing Azerbaijan's law, president's acts and the legal acts of the Cabinet of Ministers into line with the amendments to the law 'On the Central Bank of Azerbaijan'.
Moreover, the Cabinet of Ministers has been instructed to control the process of bringing the legal acts of the executive authorities into line with this law and to inform the president about the execution of this task within five months.