Azerbaijan, Baku, November 10 / Trend , I.Khalilova /
As of 1 Oct., the total amount of signed loan agreements with international financial organizations in order to continue socio-economic reforms in Azerbaijan and the implementation of priority projects was $7397 million, the Finance Minister Samir Sharifov said during discussions on the 2010 draft Public budget at the Parliament.
"Of the total loans borrowed, today $3980 million have been spent," said the Minister. According to him, the share of spent foreign debts in relation to the GDP for 2009 is 8.7 percent, which is considered very low in the world practice of external borrowing.
The cost of servicing the state external and domestic debt in 2010 was determined in amount of 287 million manat. "In the future, taking into account the interests of the state, attracting credits under state guarantees will be continued for the implementation of social and infrastructure projects by state-owned enterprises," said Sharifov.
In this regard, for ensuring guarantee for external borrowing attracted under state guarantees and for timely fulfillment of obligations on them, in 2010 it is intended to transfer 100 million manat to the guarantee fund compared to 50 million manat in 2009.
Chairman of the parliamentary committee on economic policy Ziyad Samadzade also believes that in Azerbaijan the share of external debts is the lowest in GDP, although for the amount of investments, the country occupies leading positions.
"Upon the task of the Head of State, over next years, the country will continue measures on the effective use of foreign loans, said Samadzade. - In addition, in connection with the strategic tasks on the development of non-oil sector of Azerbaijan, investment in this sector will be increased."
The external debt of Azerbaijan at the level of 8-9 percent of GDP is the lowest in the world. For example, in Estonia the figure makes up 108 percent of GDP, Ireland and Russia - 34 percent, Latvia - 20-30 percent.
Official rate on Nov. 10 is 0.8029 AZN/USD.
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