SOFAZ OKs draft budget for 2017

By Nigar Abbasova

Azerbaijan's sovereign wealth fund SOFAZ approved its draft budget for 2017 on December 29. The document was approved during a meeting of the supervisory board of the Fund chaired by Prime Minister of Azerbaijan and Chairman of the board Artur Rasizadeh.

The board also defined major directions of its investment policy, an estimate of expenditures. Following the discussions, the board decided to submit the documents for the approval of the President.

Board members also discussed amendments to the “Rules on management of foreign currency assets of the State Oil Fund of Azerbaijan” and “Rules on the preparation and execution of the annual program of revenues and expenditures (budget) of SOFAZ” proposed by the Executive Director of the Fund and recommended the amendments for the approval of the president.

The budget of the Fund for 2017 is drafted on the basis of an oil price standing at $40.

Transfers of the Fund to the state budget are expected at the level of 6.1 billion manats ($ 3.45 billion) in 2017, while the figure is 1.515 billion manats or 19.9 percent less than in 2016.

Revenues of the Fund in 2017 are projected at the level 8.37 billion manats ($ 4.73 billion) in 2017, while expenses are expected at the level of 6.95 billion manats ($ 3.93 billion).

As of October 1, the assets of SOFAZ stood at $35.82 billion, recording an increase of some 6.7 percent as compares to indices of early 2016 ($33.57 billion).

The Fund plans to increase its assets by $1 billion in 2017.