(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 13. Opportunities
for investment in state enterprises of Azerbaijan are expanding,
Azerbaijani Economy Ministry told Trend .
"Azerbaijan is consistently implementing structural reforms
aimed at increasing efficiency, liberalization and diversification
of the economy. The ongoing reforms also cover the activities of
state enterprise," the ministry said.
It was noted that application of corporate governance principles
in the work of state enterprises, increasing their economic
efficiency and improving their financial sustainability are among
the main factors contributing to Azerbaijan's economic
development.
"Among the advantages of the new management method is the
transfer of management of state-owned enterprises to the Azerbaijan
Investment Holding Company established for this purpose, whose
tasks include control over their activities through supervisory
boards. The division of responsibility and ensuring accountability
through supervisory boards created a solid basis for increasing
economic benefits: transition from losses to profits, application
of responsible spending policy, creation of new sources of income,
minimization of budget subsidies, commercial transformation of
state enterprises, making transfers to the budget," the ministry
said.
Such factors as political and financial-economic stability,
favorable business environment, comprehensive development of free
market relations, support of sustainable private property in
Azerbaijan, accelerate economic development and increase interest
of foreign investors to Azerbaijan.
"At the same time, opportunities for citizens to benefit from
economic development are steadily growing. Attraction of private
investments in large state enterprises will allow adapting their
activities to the requirements of the competitive environment. In
this regard, the decree of the head of state "On measures in
connection with the attraction of private investment in state
enterprises of Azerbaijan Republic" dated August 31, 2023 is of
special significance," said the ministry.
It was noted that the document envisages attraction of
investments in International Bank of Azerbaijan, Baku Telephone
Communication, Aztelekom, Azerbaijan Caspian Sea Shipping Company,
AzerGold, Azerikimya Production Association (Ethylene Polyethylene
Plant), Urea and Methanol Plants. Realization of the tasks
specified in the Order is aimed at reducing the financial share and
burden of the state in the management of large enterprises, as well
as expansion of public-private partnership.
"The document will promote wider application of corporate
governance mechanisms and revitalization of capital markets in the
country. The order is also aimed at expanding opportunities for
citizens' participation in the management of state-owned
enterprises and private investment in these enterprises," the
Ministry of Economy noted.
The document says that studies will be conducted and proposals
will be prepared with the involvement of reputable international
consulting companies.
"They will cover restructuring, rehabilitation, evaluation of
state enterprises, identification of potential investors,
liberalization and anti-monopolization of the relevant market,
changes in the organizational and legal form of state enterprises
and the possibility of transferring non-core activities to the
private sector, methods of partial sale of parts and shares of
state participation intended for privatization, as well as
improvement of the legal framework in this regard," said the
ministry.
In general, thanks to the consolidation of private investment
and expansion of cooperation between private business entities and
state enterprises, the diversification of the national economy
structure will accelerate, the dependence on the non-oil and gas
sector will decrease and competitiveness will increase," said the
ministry.