SOFAZ assets exceed $40B for first time in 20 years

26 April 2019 19:30 (UTC+04:00)

By Trend

For the first time in 20 years, the assets of the State Oil Fund of Azerbaijan (SOFAZ) have exceeded $40 billion, Trend informs referring to a report of the fund.

According to the report, as of March 31, SOFAZ assets reached $40,273.3 million, which is 4.56 percent more compared to the figure at the beginning of the year ($38,515.2 million).

"The volume of assets of the State Oil Fund of Azerbaijan, established in 1999 as a result of the far-sighted policy of national leader Heydar Aliyev and this year celebrating its 20th anniversary, for the first time in its history exceeded $40 billion. The growth of SOFAZ assets is another example of a long-term policy led by President Ilham Aliyev aimed at sustainable economic growth," the fund's report reads.

In the 1Q2019, SOFAZ budget revenues amounted to 5,960.7 million manats, while the budget expenditures equaled to 2,640.7 million manats.

The fund's revenues from the sale of oil and gas agreements amounted to 4,605.0 million manats, including 3,833.5 million manats from sales of profitable oil and gas, 766.4 million manats from bonus payments and 5.1 million manats of transit revenues. Revenues from managing the fund's assets amounted to 1,355.7 million manats.

During the 1Q2019, SOFAZ carried out transfers to the state budget in the amount of 2,615.0 million manats.

Some 19.7 million manats were allocated for the implementation of measures to improve the social conditions of refugees and IDPs, and the expenses for managing the fund amounted to 6 million manats.

The extrabudgetary expenditures of SOFAZ due to changes in currency rates amounted to 332 million manats.

SOFAZ was established in 1999 with assets of $271 million.

Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

The main goals of the State Oil Fund include accumulation of resources and placement of assets abroad in order to minimize the negative effect to the economy, prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.

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