Baku, Azerbaijan, Nov. 27
By Anvar Mammadov – Trend:
The free balance of the unrealized profit of the Central Bank of Azerbaijan will be included in the State Debt Guarantee Fund to secure debts received under the state guarantee.
This is stipulated by the amendments to the Law on State Debt, submitted to the Azerbaijani parliament for discussions.
Previously, the funds in the fund were accumulated through:
- funds allocated from the state budget;
- a one-time uncompensated fee, received from the main borrower to provide a state guarantee;
- revenues to the state budget on re-agreements concluded between legal entities – principal and repetitive borrowers and the relevant executive authority, and contracts concluded with intermediary banks (agents) in connection with the use of loans;
- part of the costs saved during the year, and envisaged in the state budget in connection with servicing the public debt and others.
The changes to the Law “On State Debt” have been prepared in connection with the changes introduced in the Law “On the Central Bank of Azerbaijan”.
As of July 1, 2017, the volume of Azerbaijan’s foreign public debt amounted to $7,172.6 million (12,208.5 million manats), which accounts for 18.9 percent of the country’s GDP.