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Elman Rustamov: â€œAzerbaijanâ€™s strategic currency stocks are forecasted to exceed $50 blnâ€

11 October 2012 12:27 (UTC +04:00)

Rustamov says Azerbaijan has strengthened its position in the medium income group of the countries. Per head GDP exceeded AZN 10,000 and Azerbaijan leaves 100 countries behind for this index.

Besides, export exceeds import by 3 times. Non-oil commodity and service export are expected to be $5 bln by the end of this year. Service export enlarges and is equal to 60% of non-oil export. Surplus in Balance of Payments is expected to be $16-17 bln, strategic currency stocks - $50 bln. Strategic stocks reach 70% of GDP.

He also noted that, investments rose 27%, including in non-oil sector â€“ 31%. Direct foreign investments in non-oil sector also increased, which is expected to be $ 1bln. Budget expenditures soared 27%, as well investment expenses â€“ 20%. Non-oil receipts surged 14%. Budget forecasts are fulfilled fully and surplus is observed.

He stated that, employment level in the country made 95% and more than 430,000 jobs had been launched since 2008. In 9 months of 2012, 94,000 new jobs were launched. Population income rose 12%, while it has doubled since 2008.

According to Rustamov, main reason of stability and sustainability is macroeconomic strategy and policy: â€œAzerbaijan has sufficient maneuver opportunities against global risks. Azerbaijanâ€™s public debt makes 8% of GDP, currency stocks exceed external public debt by 9 timesâ€.

He also noted that, the inflation was already single-digit, annual average inflation made 1.5%. Growth rate of salaries outnumbers inflation rate by 7percentage points.

About banking sector, Rustamov said that, banksâ€™ capitalization level was higher, they had sufficient stocks against risks. Banksâ€™ capital rose 18% in 2012, 49% - in past 4 years. Banksâ€™ assets soared 11% in 2011, 51% - during past 4 years. Populationâ€™s term deposits surged 8% in 2012 and they increased by 2.3 times since global economic crisis started. Share of external debt in financing of banksâ€™ assets dropped to 13% from 20% within past 4 years. Sectorâ€™s liquid assets exceed foreign debt liabilities by 100%.

Rustamov stated that, stability and growth priorities of banking sector made important the demand for banksâ€™ capital to quintuple to AZN 50 mln.