AZERATC state news agency,
1, September 2007

Economic Development Minister Heydar Babayev met Friday with visiting mission of the International Monetary Fund. The mission led by Vitaliy Kramarenko, deputy director of the IMF department for the Middle East and Central Asia includes IMF experts Mayra Zermeno and Shuang Ding. Discussions at the meeting focused on the project included in the state investment program for 2007, preparation of the state investment program for the next year, its major priorities, macroeconomic framework of the draft consolidated budget for 2008, inflation, real GDP, investments, budget expenditure growth rate, improvement of the business climate and other issues.

Heydar Babayev updated IMF representatives on the socio-economic situation in the country in 2007. He highlighted steady economic progress and accomplishments achieved in various sectors of economy in Azerbaijan. According to him, major priorities of the State investment program deal with energy, education, healthcare, transport, agriculture, waste recycling, cleaning of petroleum-polluted areas and amelioration. One of the new projects financed from the state budget this year require AZN 260 million on construction and repair of schools.

Three versions of the draft state budget for 2008 have been prepared. After nine months, the draft budget will be revised. The sides also touched on the present inflation rate and measures that the government of Azerbaijan and National Bank take to keep inflation at bay. The steady reforms in the energy sector helped to achieve an increase in payments for electricity bills up to 83 percent. Heydar Babayev gave an insight into the "State Program on Socio-economic Development of Regions of Azerbaijan".

Head of the IMF mission Vitali Kramarenko noted that IMF closely monitors the measures that Azerbaijan government takes to cement economic stability and ensure rapid economic growth. There was also an exchange of views on the macroeconomic indicators for 2007, state investments, medium-term fiscal framework and other issues.