Скачать или смотреть GOVERNMENT SHOULD BE MORE SELECTIVE ABOUT FOREIGN LOANS

The government should be more selective with involved foreign loans. As stated in the report of the Coalition of Bank Monitoring on "Foreign loan and public participation in projects of international financial institutions", $ 10 billion 495 million government guaranteed loans have been obtained for the past 10 years, of which more than half ($ 5 billion 818 million) was spent.
In addition to traditional donors, local contractors received funds from American, Scottish, Czech, Korean, Iranian banks, the Government of China and Kazakhstan and the list of such donors is extending from year to year.
According to a board member of the Coalition, Zohrab Ismayil, in 2011the public debt-to-GDP ratio declined by 1.7% in comparison to 2010. However the actual debt increased up to $ 4 billion 817 million.
From 2004 to 2012, Azerbaijan attracted $ 9 billion 545.9 million for the implementation of 71 projects; more than a third (33.66%) of the projects were utilized by the Transport Ministry. Azerenergy JSC comes in the second place (24.09%), with 10 implemented projects worth $ 2.3 billion.
Upgrading water and sewer system took $ 1 billion 66 million from the budget. Foreigners lent $ 261.9 million to Azerbaijan for the development of economy and financial system, and $ 227.9 million for the improvement of environmental situation.
Speakers are also concerned about the disparities between the indices of the World Bank and the Ministry of Finance of Azerbaijan. In 2010 the difference was $ 35 million, in 2008 however, it was $ 314 million. The difference is significant even when it is calculated based on different methodology.
Recommendations were announced at the end of the event. The government should limit foreign borrowing and make a long-term strategy to attract loans, giving the priority to international institutions that effectively control the expenditures. Activities of the government on this area should be transparent and accountable to the public. Annual reports of public companies and business organizations on the use of such loans must be fully available on their web-sites.