SOFAZ sees rise in volume of assets
Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) reached 3.523 billion manat in the first quarter of 2013, while budget expenditures constituted 2.929 billion manat.
The Fund reported that revenue in the amount of 3.413 billion manat was received from execution of oil and gas agreements, including 3.410 billion manat from the sale of profit oil and gas, 2.1 million manat as transit payments and 0.01 million manat from sale of assets received from foreign companies.
The revenues from managing the Fund assets amounted to 110.4 million manat. Bonus payments in the first quarter amounted to 0.2 million manat.
The expenditures in the amount of 49.3 million manat were directed to financing of improvement of social condition of refugees and internally displaced persons, 27.2 million manat were used for financing the reconstruction of the Samur-Absheron irrigation system.
Moreover, 2.840 billion manat were transferred to the state budget, 3.8 million manat - financing of 'The state program on the education of Azerbaijani youth abroad in the years 2007-2015' and 1.1 million manat - financing of construction of the Baku-Tbilisi-Kars railway. The Fund's administrative and operational expenses in this period hit 7.8 million manat.
SOFAZ's expenses due to exchange rate differences in January-March amounted to 446.8 million manat.
The assets of SOFAZ as of April 1, 2013, have grown by 0.6 percent 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 policy of SOFAZ, 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 minimize the negative impact on the economy preventing a 'Dutch syndrome', to ensure savings for future generations and to maintain the current socio-economic standard in the country.
SOFAZ, a sovereign wealth fund, was established in December 1999 by a presidential decree. Its primary objectives are to help maintain macroeconomic stability in the country and to generate wealth for present and future generations.
The main purposes of the fund are the accumulation of funds and placement of assets abroad to minimize the negative impact on the economy, preventing the so-called Dutch disease to ensure savings for future generations and to maintain the current social and economic standards in the country.