Azerbaijan in talks with IMF on applying stress tests to assess sustainability of state-owned enterprises

BAKU. May 4 (Interfax) - Azerbaijan's Finance Ministry is in talks with the International Monetary Fund (IMF) on applying stress tests to assess the sustainability of the country's state-owned enterprises (SOE), the Finance Ministry said.

The Finance Ministry said that the relative parties have discussed the matter at a meeting in Baku between First Deputy Finance Minister Anar Kerimov and an IMF delegation led by Nino Chelishvili, Chief Economist of the Budget Department.

"The parties have discussed the existing mechanisms for monitoring and reporting of SOE, the reforms being implemented in the area, as well as the improvement of institutional instruments and fiscal risk management. Particular attention was paid to the activities of the SOE Monitoring Agency under the Finance Ministry, the fiscal impact assessment, and the implementation of best international practices," according to the statement.

Regarding this, Kerimov said that the reforms implemented in recent years on monitoring state-owned enterprises are necessary to improve the transparency of operations and reporting systems, noting that further improvement of the institutional framework in the area and effective fiscal risk management remain priorities.

Chelishvili in turn noted the importance of applying stress tests to assess the performance of state-owned enterprises, bolstering institutional capacity, and developing technical cooperation.

The Finance Ministry said that the IMF mission would remain in Baku until May 15. IMF representatives plan to discuss issues related to the operations of state-owned enterprises, reforms, and management practices.