IMF MISSION APPROVED DRAFT OF AZERI STATE BUDGET FOR 2002

The mission of International Monetary Fund approved the draft of the Azeri state budget for 2002, prepared by the Azeri government. The Prime minister of Azerbaijan Arthur Rasizadeh informed today journalists that the income part of the state budget for 2002 is forecasted at 4.62 trillion manats level (1 USD equivalent to 4,689 manats), the budget expenditures - 5.05 manats, GDP - 28.7 trillion manats. The annual inflation will reach up to 2.5%, investments - USD 1.9 billion. In 2001, the government expects profits at 4.175 trillion manats, expenditures - 4.595 trillion manats, GDP - 23.7 trillion manats.

The Prime Minister of Azerbaijan informed that the IMF mission suggested to the government to undertake obligations on complete covering by 2002 by the budget organizations of debts for communal services and consumed electric power. The government shares the IMF's concern over the low collection of payments for energy and is trying to solve this problem by handing the electric power units of large cities of Azerbaijan to foreign investors for long-term management. The Prime minister also informed that the IMF officials did not criticized the paces of structural reforms in Azerbaijan. The experts of IMF suggested Azerbaijan to create secretariat for preparation of full-scale program on decreasing the level of poverty in the state (PRGF). In July of 2001 the IMF allocated to Azerbaijan a USD100.2 million soft credit. The next mission of IMF will visit Baku this October.