Azerbaijan’s net international investment position up 13-fold

Azerbaijan’s net international investment position up 13-fold
# 12 December 2008 13:34 (UTC +04:00)
The central bank said reserve assets reached $13 600.8 million and foreign direct investment was $4 873.1 million.
In addition, direct investment in oil and gas sectors made $4 807 million while the figure was $66.1 million in other sectors.
The stock of assets grew $8 020.8 million or 56.5% from earlier this year.
The country’s total liabilities as at October 1 reached $13 797.6 million, up $244.4 million or 1.8% from earlier this year.
The reason why the growth was slight is that direct investments in Azerbaijan declined to $5 849.6 million from $597.6 million over the three quarters.
So, Azerbaijan’s net international investment position as at October 1 was + $8 410.5 million, up 13-fold on early this year.
The net international investment position is the stock of external assets minus the stock of external liabilities.

International Investment Position (mln. dollar)

01.10.2008

01.01.2008

Assets

22 208,1

14 187,3

Foreign direct investment

4 873,1

4 676,4

Portfolio investment

404,1

229,9

Other investment*

3 330,1

1 901,8

Reserve investment

13 600,8

7 379,2

Liabilities

13 797,6

13 553,2

Direct investment in Azerbaijan

5 849,6

6 597,6

Portfolio investment

229,8

203,9

Other investment**

7 718,2

6 751,7

Net International Investment Position

8 410,5

634,1


• Other investments include commercials loans, deposits or cash money lent and repaid in assets and liabilities.

As shown, Azerbaijan’s foreign creditor (asset) and investor position has consolidated remarkably. This happened mostly because assets grew significantly while liabilities remained steady.
From macroeconomic perspective, Azerbaijan’s international investment position can be considered as very positive against the backdrop of the financial crisis.
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