Aliev in search for $4 billion dollars

Aliev in search for $4 billion dollars

The year for Azerbaijan didn’t start successfully.

The decline in oil prices and the subsequent devaluation of the manat have generated chaotic situation in the neighboring country.

Azerbaijan gets 75% of the state revenue from oil and gas revenues.

These two raw materials will account for almost 95% of the exporting.

It is obvious that the Azerbaijani economy is sensitive to even small shocks in the oil market.
Aliev is in search for $4 billion dollars.

The main anticipating support is from “International Monetary Fund” and the “World Bank”. At the same time, many years ago, in the distant 1992, Azerbaijan had taken a loan from the IMF $363 million dollars, most of which on preferential terms. After paying off the loan in 2009 he complained that with the help of the loan the IMF robbed Azerbaijan and stopped there.

Today Ilham Aliyev wants to get a loan of three billion dollars and another billion dollars from the IMF “World Bank”. So far, the president has reached out to the “Asian Bank for Reconstruction and Development,” there are also expectations from “European Bank for Reconstruction and Development.”

Thus, it is clear that even the government’s provision of a new loan will be a temporary extension.The unemployment continues to rise in the public and private sectors, the rise in prices of food and essential goods. Protests broke out I these conditions.

Azerbaijan is losing its attractiveness for foreign investors, which may be the start of a new phase of the crisis.

All this makes the reduction in the military budget and almost stopping of the lobbying activities worldwide foreseeable.

He is working like a wounded beast in its last efforts to keep the tension at the Karabakh frontline, but forces will eventually give in.

By Anna Barseghyan

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