Why International Monetary Fund's Baku Office Closed? (UPDATE)

(MENAFN- Trend News Agency) First version published at 19:52

BAKU, Azerbaijan, May 19. Azerbaijani Ministry of Finance believes that the closure of the local office by the International Monetary Fund (IMF) in Baku is a logical step and can be considered as an indicator of the transition of Azerbaijan to a higher category in terms of financial stability and improving its economic rating, Mayis Piriyev, Head of Department of the Public Relations and Civil Appeals of the ministry, told trend .

According to Piriyev, Azerbaijan, which has been accepted as a member of the IMF since 1992, worked closely with the fund in 1993-2001, attracting loans for a number of programs, in connection with which, in those years, the IMF office in the country acted as a resident representative.

He noted that the main mission of the IMF is to implement credit and financial assistance programs that support the stabilization and improvement of the macroeconomic and fiscal situation in member countries experiencing financial difficulties in balancing their expenses with income and facing problems of depletion of their reserves in foreign currency.

The last time the Azerbaijani government attracted a loan from the IMF was in 2001, and by 2015 it had returned all its debts to the fund.

"Taking into account the rapid socio-economic development of our country, the significant growth of the gross domestic product, the creation of the State Oil Fund to manage oil revenues, and the formation of foreign exchange reserves that are many times higher than external debt obligations, since 2009 the cooperation of Azerbaijan with the fund has been carried out exclusively in the format of annual consultations and receiving some technical support," Piriyev said.

He also said that, during this time, the IMF reduced the number of employees of its Baku office and was actually represented by one contact person.

According to Piriyev, in a letter addressed to the ministry in connection with the decision to close the office in the country, the foundation notes that Azerbaijan currently has a stable economy and large financial resources, and accordingly there is no need for a policy-oriented cooperation and the activities of the office.

Piriyev, noting that in the absence of a local office of the fund in Baku, it is planned to expand cooperation within the framework of technical support, added that the country decided to provide financial support to the activities of the recently established the Caucasus, Central Asia, and Mongolia Regional Capacity Development Center (CCAMTAC), opened by the IMF, in the Kazakh city of Almaty.

He also said that a number of state structures of Azerbaijan are already showing interest in the activities, training and technical expertise of this center.


Trend News Agency

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.