SOFAZ: Application of new fiscal rules will allow continuous increase of assets in next years

Baku. 2 November. REPORT.AZ/ Preservation of assets for future generation is one of SOFAZ’s (State Oil Fund of Azerbaijan) duties, SOFAZ told Report.

According to the Fund, in spite of sharp decline in crude oil price in 2014-2016, preservation of SOFAZ assets was priority of the state: "For example, as President Ilham Aliyev said at the meetings of the Cabinet of Ministers, one of the main results of the reporting year was to preserve SOFAZ reserves."

SOFAZ said that a new fiscal rule was applied in the current year which sets conditions for upper limit on oil revenues, expenditures of consolidated budget, as well as reduction of non-oil deficit. According to the rule, growth of the expenditures of the consolidated budget cannot exceed 3% compared to the next year.

"Application of the new fiscal rules will allow continuous increase of assets in the next years. On the other hand, increase of shares of assets with high profitability in the investment portfolio in accordance with the fulfillment of SOFAZ’s long-term investment strategy also serves increase of Fund’s assets along with raising profitability of the investment portfolio in the long-term period’, the Fund said.