IMF experts arrive in Azerbaijan

Experts of the International Monetary Fund (IMF) have arrived in Baku for a fortnight visit today, IMF representatives in Azerbaijan reported. Head of the IMF mission in Azerbaijan John Wakeman-Linn, representing the IMF Middle East and Central Asia Department, is to arrive in Baku on October 19, they added.

The experts are expected to examine the Azerbaijan side's honoring the fourth paragraph of the IMF agreement, stipulating obligations concerning the monetary regime and general obligations of the IMF member countries, and to discuss forecasts concerning Azerbaijan's 2005 state budget and the issue of the rise in home prices for energy resources. Besides, they will touch upon indexes of the 2004 budget execution. The issue of the IMF's allotting Azerbaijan the fifth sum at the rate of 12.87 million euros under the Poverty Reduction and Growth Facility (PRGF) will be cleared up when results of the mission are known, the IMF representatives said. As of today, 41.84 million euros have been allotted to Azerbaijan under the PRGP. Altogether the program, which was adopted in June 2001 and prolonged for two more years later and which will end in March 2005, provides for the allotment of 80.45 million euros to Azerbaijan. The credits are given for the period of 10 years with the interest rate of 0.5% and a 5.5-year period of preferential terms.

Azerbaijan's 2005 draft budget stipulates a rise in the gasoline price by 25% and the diesel oil price by 50%. Altogether Azerbaijan has received credits to the sum of $400 million from the IMF since 1992.