Baku, Fineko/abc.az. The President of Azerbaijan has confirmed government’s new approach towards investment financing - it will no longer be carried out at the expense of external loans.

President Ilham Aliyev has stated at a government meeting devoted to the results of the first half-year of 2012: "I see no great need in raising new loans".

"Main investments should be made at the expense of the State Budget or previously raised loans. A new loan can be raised in exceptional cases. Each company or ministry which want to raise a loan must justify such a need, knowing that by doing so we increase country’s external debt," President Aliyev claimed.

He, however, pointed out that foreign state debt now stands at only 7% of country’s GDP.

"We can repay foreign debt during the one day - the country’s foreign exchange reserves, equal to $44 billion, exceed it by 10 times," he said.

He also noted as a positive political and economic fact that today the country becomes a foreign lender.

12.07.2012 11:50