Azernews.Az

The global economic crisis poses no threat to Azerbaijan in the short term, the head of the World Bank office in Baku has told Radio Liberty.
Gregori Yedzherchak said, however, that if the decline in world markets persists, the country would face economic problems.
He also said that, if crude prices continue to fall, Azerbaijan`s oil revenues would certainly decrease. This will primarily affect funds being transferred to the State Oil Fund, prompting the government to review state spending. "These expenses are quite large right now," he said.
Yedzherchak said increasing the central bank`s control over local banks was an example of the Azerbaijani government`s short-term measures to ward off adverse effects from the global economic crisis.
As for long-term steps, he said this entailed developing the non-oil sector and preventing the national economy`s over-dependence on incoming petrodollars.
Paavo Vayrynen, Finland`s Minister for Foreign Trade and Development, who visited Azerbaijan last week, is of the same opinion. Addressing a joint business forum in Baku, Vayrynen said the Azerbaijani economy is not noticeably vulnerable to the crisis that has hit world markets, as Azerbaijan has ample financial resources and is using them efficiently.
"Azerbaijan is flush with oil and gas reserves, and this is its advantage over other countries. Therefore, the financial crisis that has crippled the world economy could only have a partial impact on Azerbaijan."
Vayrynen said that, on the contrary, Azerbaijan could use this problem, which has turned into a headache for other states, to its benefit, since the South Caucasus republic is a supplier of energy resources.