15:48 - 6.04.2020

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April 6, Fineko/abc.az. The State Oil Fund of Azerbaijan (SOFAZ) has distributed information on a range of important issues.

ABC.AZ reports with reference to SOFAZ’s information, that Fund’s budget forecasts are approved on an annual basis, and the level of implementation for the estimated budget year in certain periods of this year is different.

Thus, depending on the requirements of the State Budget and changes in demand in the foreign exchange market, it is possible non-execution on obligations in the same amount for months. However, depending on crude oil prices on the world market, the Fund's revenue dynamics may grow at different rates during different periods of the year.

Thus, depending on the price factor for oil and the different execution of expenses in different periods, there may be either an increase or decrease in SOFAZ assets by the end of a certain period during the year. But regardless of this, since the annual upper limit of the Fund's expenditures is set, although the execution varies in different months, the annual budget obligation of SOFAZ cannot be higher than the level approved in the State Budget. In short, if we exclude revenues from SOFAZ funds, the only factor that affects the level of the Fund's funds at the end of each year is the rate of oil prices on world markets.

By Elmir Murad