Azerbaijan to prepare long-term development model of pension-insurance system by 2050

Azerbaijan will prepare a model of long-term development in the pension-insurance system by 2050, chairman of the Azerbaijani State Social Protection Fund Salim Muslimov told press on Friday.

"The country will prepare a long-term model for a pension-insurance system for the next 40 years within a joint social protection and pension provision development project with the World Bank," Muslimov said.

He said that the State Fund together with the U.S company Overture Financial will hold a presentation by late Oct. It will be dedicated to the planning of the strategic directions of the fund until 2025.

"The projections of indices to be achieved by the fund up to 2025 while maintaining the current level of macro-economic and demographic indices, as well as the current parameters of the pension-insurance system will be announced during the presentation," he said. "Moreover, the forecasts will be presented given the changed parameters."

Muslimov said that the preparation of a long-term strategy by 2050 will be launched after the presentation.

Overture Financial has submitted the initial version of the model within the project worth $ 1.1 million, financed by the U.S. Agency for Trade and Development (USTDA).

A loan agreement on the project "Development of social protection in Azerbaijan" worth $54.6 million was signed between the World Bank and the Azerbaijani government in November 2008. The World Bank has provided $26.7 million to the International Development Association (35 years with a grace period of 10 years and 0.75 percent per annum) to finance the project.


/Trend/