Vusal Gasimli: Azerbaijan did not use foreign borrowing to fight corona crisis

12:07 - 15.04.2020


April 15, Fineko/abc.az. Vusal Gasimli, the executive director of the Center for Analysis of Economic Reforms & Communications, has commented on the impact of the pandemic on the different sectors of Azerbaijan as a whole.

ABC.AZ reports that Gasimli noted that Russia has agreed to change the budget parameters for 2020-22.

According to Gasimli, under the influence of global shocks, the government of Kazakhstan has also prepared proposals for increase of revenues and expenditures in the budget for 2020.

Gasimli, who noted that the government of Ukraine hopes to cover the budget deficit by borrowing $5 billion within the EFF tranche from the IMF in exchange for certain concessions, added that the government of Georgia, expecting loss for $1 billion out of $4.3 billion under the influence of the global shock, has launched negotiations about borrowing with international financial institutions:

"Besides such states as Azerbaijan, Russia and Kazakhstan, which have a "safety cushion", all other countries in the region are trying to balance the state budget for 2020 by increasing the external public debt and reviewing the budget deficit. The struggle with the crisis at the expense of the external debt is expensive. And Azerbaijan, unlike the countries of the region, did not resort to external borrowing or devaluation as part of the fight against the currency crisis, relying only on its own resources," he said.

 

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