SOFAZ assets to keep previous year level

The State Oil Fund of Azerbaijan (SOFAZ) forecasts its total assets by the end of 2013 will remain at the level of last year, CEO of the Fund Shahmar Movsumov told journalists on Tuesday.

"If oil prices on the world markets remain unchanged, we can keep the assets at the level of beginning of the year, although the budget has been prepared with a deficit," Movsumov said.

In 2012 the revenues of the State Oil Fund amounted to about 13.674 billion manat with expenses at10.574 billion manat.

SOFAZ budget revenues were approved for 2013 to the sum of more than 11.482 billion manat and expenditure more than 13.403 million manat. In the first quarter, the revenues comprised over 3.523 million manat, and expenditure about 2.930 billion manat.

Transfers to the state budget last year were made to the sum of of 9.905 billion manat, and this year they are projected to be 11.350 billion manat. In the first quarter SOFAR had already transferred to the state budget over 2.840 billion manat.

SOFAR assets as of January 1 2013 were increasing by 14.5 per cent compared to the beginning of 2012 and comprised over $34.129 billion ($29.8 billion in 2012). The assets of SOFAZ as of April 1, 2013, have grown by 0.6 per cent compared to early 2013 ($34.129 billion) and stood at $34.325 billion.

SOFAZ was established in 1999 when its assets amounted to $271 million.

Under the company's policy, the funds may be used for construction and reconstruction of strategically important infrastructure projects, as well as for settlement of important national issues. In 2001-2009, special attention was focused on the development of both the oil sector and the infrastructure of the non-oil sector of the country as well. At present, SOFAZ funds a number of strategic projects in the field of irrigation and transport.

The main purposes of the fund are the accumulation of funds and placement of the fund's assets abroad to minimise the negative impact on the economy preventing a 'Dutch syndrome', to ensure savings for future generations and to maintain the current socio-economic standards of the country.

The official exchange rate for April 23 is 0.7847 AZN / USD.


/Trend/