TODAY.AZ / Business

Government being more careful in borrowing policy

23 February 2006 [09:20] - TODAY.AZ
The government of Azerbaijan will be more careful with the borrowing policy this year.

According to APA, results of the past year show volume of foreign public debt of the republic totaled $1 billion, utilized part of the debt formed $650 million, and its ratio to GDP was 12.6%.

According to the Minister of Finance Avaz Alakbarov, this indicator has not exceeded 16-18% in Azerbaijan; however, the same ratio is sufficiently large in some countries. For example, public debt amounts to 74% of GDP in Kyrgyzstan, 34% in Kazakhstan, 27% in Georgia, 28% in Tajikistan, 20% in Armenia, 22.6% in Moldova, and 16-17% in Russia.

"As a result of positive works implemented in connection with economic growth in Azerbaijan, we have good opportunities to increase our share in credits received from abroad up to 50% in most of our projects, fund some projects ourselves, and obtain borrowings against security for implementation of most important tasks", - the Minister stressed.

Mr.Alakbarov also said that the credit rating of the country had reached the stable "BB" level.
The Minister informed that the government would strengthen its support to develop the non-oil sector. Cooperation with financial institutions would be expanded this year.

Funds obtained from privatization are expected to increase a little bit as well: "Specific weight of the non-oil sector in GDP will reach 79.5% in 2006. We will strive to increase cash income of population by 27% at least and cash outlay by 26.5%. Average monthly salary will increase by 25% at minimum in the country. Inflation is also planned to be retained one-digit this year. One of the important issues is adoption of the Competition Code and this work must be livened up".

The Minister also said that financial authorities had much work to reduce indirect subsidies and noted that the Cabinet of Ministers had already confirmed large taxpayers. SOCAR, SOFAR, "Azerenergy" OJSC and "Azerigas" OJSC to be monitored.


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