Economy 15:37 18/02/2013 Azerbaijani authorities use up Oil fund

The Government of Azerbaijan has turned into a lazy element and the hope and confidence in stability of the State Oil Fund revenues have transformed the government into club of oligarchs and consumers in the same time, the Azerbaijani information portal says.

“Since last year, the Oil Fund actively purchases properties in overseas. In the near future more than a billion dollars will be spent on the purchase of real estate. Considering the fact that the global economic crisis continues unabated, new waves of crisis occur each year, and experts say that the real improvement will not arrive up to 2020, these steps of the Fund appear to be very risky. As we know, during the crisis the property prices go down in the first place,” the article says.

According to the author, on the other hand, taking into consideration the fact that "with what appetite the authorities of the country use up the Fund through different grand, magnificent and little profitable projects, then it would be better of them to buy property which they we hope will pass to coming generation, and the loss of the price will not be as huge and palpable, as the loss of the Fund means within the country.”

It is noted that in 2013, the cost of the Oil Fund will exceed revenues for the first time, the expected revenues will be $ 15 billion, while expenses - 17.2 billion, that is, 2.2 billion more, and this is a very troubling tendency.

"It seems that the authorities want to finish off Oil Fund reserves quickly and under various pretexts. This fact seams surprising for the election year. Do not they believe in their future?” the portal writes.

Another disadvantage, according to the author, is that the government, relying on the Oil Fund will not be able to a flexible policy.
“Figuratively speaking, the government has become a lazy element, and the hope and confidence in the stability of the translational motion of the Fund’s means has transformed the government into the club of oligarchs and consumers at the same time.

The author compares State Oil Fund of the Republic of Azerbaijan (SOFAZ) with an optimal analogous structure that exists in the world which is Oil Fund of Norway, and stresses that's a long way off Norway. The assets of this Fund that reach $ 300 billion, may be increased to $ 500 billion in about three years and even exceed $ 800 billion in 10 years,” the writer says and notes that the Norwegian government has set a target to use the Oil Fund as little as possible, and leave the money for future generations and for providing a decent senility of its citizens,” the article says.

“In 2003 each inhabitant of Norway was getting 35,360 dollars and today, this figure is close to threshold of 100 thousand. And what we will leave to future generations? If it continues like this, there will be only nuts...” he concluded.

Share |
Տեքստում սխալ կամ վրիպակ նկատելու դեպքում, ուղարկեք խմբագրին հաղորդագրություն` նշելով տվյալ սխալը, այնուհետև սեղմելով Ctrl-Enter:


Huge train crash in Cameron; at least 55 dead, hundreds injured
Fourteen people remained trapped on Friday under the wreckage of a packed passenger train that derailed in route between Cameroon's two...
“Readings of Narekatsi”: Second International Conference in tribute of Hrachya Tamrazyan
On October 28-29 the “Readings of Narekatsi” Second International Conference dedicated to the memory of Hrachya Tamrazyan will be...
Around 450 Shots fired towards Armenian Frontier Troops
On the night of October 21-22 the adversary have violated the ceasefire regime along the Line of Contact between Armenian-Azerbaijani opposing...
Hillary Clinton and Donald Trump’s final presidential debate. Putin’s name used the most
The two US presidential candidates Hillary Clinton and Donald Trump used the names “Putin” and “Russia” the most in the...
Mourinho explains what Henrikh Mkhitaryan needs to get back into Manchester United team
Jose Mourinho says that Henrikh Mkhitaryan is edging close to a Manchester United comeback. It was expected that the £26m Armenian...
Herbert Salber: Ceasefire preservation is a key factor for peace talks
“I have heard about it from different sources and I still need to acquire more information. Currently I am not in a position to make any...
German Historian on studying Documents about the Armenian Genocide
German historian and author of a number of works Michael Hesemann has studied the documents linked with the Armenian Genocide that are kept in...
Pobeda to carry out flights to Gyumri
Russian Pobeda Airlines has given a permission to carry out flights from Moscow to Gyumri. TASS reports. Pobeda Airlines can operate...
Aleppo Siege, Strikes Are 'Crimes of Historic Proportions': UN Rights Chief
The top United Nations human rights official said Friday that the siege and bombing of the Syrian city of Aleppo constituted "crimes of...
Bako Sahakayan received RA Defence Minister Vigen Sargsyan
On 21 October Artsakh Republic President Bako Sahakyan received Defence Minister of the Republic of Armenia Vigen Sargsyan, Head of the General...
Petrol Price dropped by 20 AMD
Today Chairman of the RA State Commission for Protection of Economic Competition Artak Shaboyan announced during the interview conducted by the...
Arpine Hovhannisyan: “Criminalization will reduce the risk and seduction of the illicit enrichment.”
“The Criminalization of illicit enrichment is one of the properties of the new government. The measure will be taken within three months...
Video message by Secretary General of the Council of Europe at the Yerevan International Conference
Today Thorbjørn Jagland, Secretary General of the Council of Europe, have addressed a video message to the participants of the Yerevan...
The Government program approved by the National Assembly
The National Assembly of Armenia approved the Government program at the extraordinary sitting on October 21. The document was passed with 87...
“We can cultivate anything,” an Artsakh resident says during ArmProdExpo specialized exhibition
The agricultural year is concluded and the farms and farming groups of different regions in Armenia that have worked hard throughout the entire...
Typhoon Haima Lashes China
New York Times news agency reports that Typhoon Haima barreled into southern China on Friday. Chinese meteorological services said the...
Human Rights Watch report: EU and USA should impose visa bans on senior Azerbaijani officials
The Azerbaijani government has renewed its vicious crackdown on critics and independent groups. The European Union and international financial...
WikiLeaks: Hillary Clinton intended to raise money for campaign from Azerbaijan’s lobbyists
The US presidential candidate,Hillary Clinton, and her campaign chair, John Podesta, discussed the appropriateness of fundraising from foreign...
Azerbaijan disrupts the Vienna and Saint Petersburg agreements, Sharmazanov says
Azerbaijan shows its actual face, Deputy Speaker of Armenia’s National Assembly Eduard Sharmazanov told reporters at a briefing while...
U.S. and Armenia continue cooperation to prevent proliferation of weapons of mass destruction
Armenia’s border guards are better trained to counter the illegal transport and proliferation of weapons of mass destruction thanks to...
NKR Defense Army: Adversary initiates sabotage penetration attempts
On October 20 at around 23:00-23:30the Azerbaijani forces have initiated sabotage penetration attempts on the eastern and southern directions of...
“MTS Smart Start 3” smartphone with suitable packages of services
VivaCell-MTS subscribers can now buy “MTS Smart Start 3” with all major smartphone features with the option of service packages most...
6.6-magnitude earthquake hits Japan
A powerful earthquake with a suspected magnitude of 6.6 has shaken western Japan, The Independent reported. The newspaper refers to the...
France to have new co-chair in Minsk Group
A French diplomat, Stéphane Visconti, is set to replace Pierre Andrieu as the French co-chairman in the OSCE Minsk Group set up dealing...
Monitoring mechanisms to be established for foreign medical workers operating in Armenia
The procedure of granting permission for short-term professional activity of foreign medical workers invited at the request of Armenian-based...
Information Report on local by-elections in Armenia presented in Strasbourg
The Chamber of Local Authorities of the Congress of Local and Regional Authorities of the Council of Europe debated on October 20, 2016 an...
President Serzh Sargsyan participated at the EPP Summit in Maastricht
Armenian President Serzh Sargsyan, who is in Maastricht on a working visit, today participated at the Summit of the European People’s...
Amendments to the Electoral Code are called to silence us, human rights defender says
The amendments and supplements to Armenia’s Electoral Code along with the enclosed legislative package adopted today by the National...
New Stamp Dedicated to the 175th Anniversary of the first Western Armenian publicist Srbuhi Tyusab
“HayPost” CJSC put into circulation on October 14 one stamp dedicated to the first  Armenian  writer, poet, publicist,...
Armenia National Team down by 13 positions on FIFA rankings
The new FIFA rankings was announced on September 20, Football Federation of Armenia reported, saying Armenia is 125th   The current...

Follow us and get updates!

Most popular articles

{"core.blocks.header.spell_message1":"Selected mistake: ","core.blocks.header.spell_message2":"Send a message about the mistake?"}