BAKU, Azerbaijan, September 13. Opportunities
for funding in state enterprises of Azerbaijan are increasing,
Azerbaijani Economy Ministry advised Trend.
“Azerbaijan is constantly implementing structural reforms
aimed toward growing effectivity, liberalization and diversification
of the financial system. The ongoing reforms additionally cowl the actions of
state enterprise,” the ministry mentioned.
It was famous that utility of company governance rules
within the work of state enterprises, growing their financial
effectivity and bettering their monetary sustainability are amongst
the primary elements contributing to Azerbaijan’s financial
growth.
“Among some great benefits of the brand new administration technique is the
switch of administration of state-owned enterprises to the Azerbaijan
Investment Holding Company established for this objective, whose
duties embrace management over their actions by way of supervisory
boards. The division of accountability and guaranteeing accountability
by way of supervisory boards created a stable foundation for growing
financial advantages: transition from losses to income, utility
of accountable spending coverage, creation of recent sources of revenue,
minimization of finances subsidies, industrial transformation of
state enterprises, making transfers to the finances,” the ministry
mentioned.
Such elements as political and financial-economic stability,
favorable enterprise setting, complete growth of free
market relations, help of sustainable non-public property in
Azerbaijan, speed up financial growth and enhance curiosity
of overseas traders to Azerbaijan.
“At the identical time, alternatives for residents to learn from
financial growth are steadily rising. Attraction of personal
investments in massive state enterprises will enable adapting their
actions to the necessities of the aggressive setting. In
this regard, the decree of the pinnacle of state “On measures in
reference to the attraction of personal funding in state
enterprises of Azerbaijan Republic” dated August 31, 2023 is of
particular significance,” mentioned the ministry.
It was famous that the doc 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 duties
specified within the Order is aimed toward decreasing the monetary share and
burden of the state within the administration of enormous enterprises, as nicely
as growth of public-private partnership.
“The doc will promote wider utility of company
governance mechanisms and revitalization of capital markets within the
nation. The order can also be aimed toward increasing alternatives for
residents’ participation within the administration of state-owned
enterprises and personal funding in these enterprises,” the
Ministry of Economy famous.
The doc says that research will likely be performed and proposals
will likely be ready with the involvement of respected worldwide
consulting firms.
“They will cowl restructuring, rehabilitation, analysis of
state enterprises, identification of potential traders,
liberalization and anti-monopolization of the related market,
modifications within the organizational and authorized type of state enterprises
and the opportunity of transferring non-core actions to the
non-public sector, strategies of partial sale of components and shares of
state participation meant for privatization, in addition to
enchancment of the authorized framework on this regard,” mentioned the
ministry.
In basic, due to the consolidation of personal funding
and growth of cooperation between non-public enterprise entities and
state enterprises, the diversification of the nationwide financial system
construction will speed up, the dependence on the non-oil and fuel
sector will lower and competitiveness will enhance,” mentioned the
ministry.
