Country to purchase debt management program

By Azernews

By Leman Mammadova

Azerbaijan and the UN Conference on Trade and Development (UNCTAD), key body of the UN General Assembly on trade and development issues, have inked an action plan for the procurement and implementation of the Debt Management and Financial Analysis System (DMFAS) program.

The action plan was signed by Samir Sharifov, Azerbaijan’s Finance Minister, and Mukhisa Kituyi, UNCTAD Secretary General.

The project is designed for three years and its total cost is 545,000 Swiss francs. The project will be financed by the Asian Development Bank (ADB) and the Swiss State Secretariat for Economic Affairs (SECO).

Application of DMFAS will allow Azerbaijan to reliably store information on debt, manage it more efficiently and assess risks.

The project provides for the permanent use of the software by the Ministry of Finance and appropriate training for the Ministry's staff.

Reliable, more efficient management of project debt data will make a significant contribution to achieving strategic goals for the effective assessment of public debt risks, further improving public debt and guarantee reporting.

“The consistent implementation of the public debt management strategy will ensure long-term sustainability of debt, Azerbaijan's attractiveness for investors and high borrowing capacity,” said Sharifov.

Mukhisa Kituyi noted that an effective public debt management system is essential for sustainable economic growth, improved governance and poverty alleviation.

“The application of system in Azerbaijan will further simplify debt management procedures, providing greater analysis, and more transparent and acceptable debt reporting,” he stressed.

UNCTAD plays the role of a focal point for development and related issues of trade, finance, technology, investment and sustainable development. Its main objective is to facilitate the integration of developing countries and countries with economies in transition into the global economy through trade and investment.

Presently, the DMFAS helps securely manage debt information in the ministries of finance and central banks up to 70 countries.