Azerbaijanand International Monetary Fund

History of the foundation of the International Monetary Fund and its activities: Being founded in 1944 in New Hampshire of the USA International the Monetary Fund began to work since 1947, it operates in the economic sphere. IMF is a specialized UN agency but it has its own charter, governance structure and budget. Currently IMF has 186 members. Members of the IMF are presented on a quota system for their shares in the global economy. IMF acts with the purpose of ensuring the credibility of global development and economic stability. IMF advises its members on economic issues, provides financial assistance and works with developing countries in order to ensure the credibility of macroeconomic stability and assist the liquidation of poverty.

Cooperation of Azerbaijan with IMF: Azerbaijan has been cooperating with IMF since the 18th of September 1992. Until now IMF has allocated a loan to Azerbaijan within the frames of six programs. But since 2005 cooperation with IMF is at the level of consultation as the government of Azerbaijan refused to get a loan from the fund. Credits allocated to Azerbaijan by IMF are paid promptly at the time scheduled by of the contract. In the said time beneficial cooperative relations have developed between Azerbaijan and IMF. This fact shows the dynamic development mechanism of the Azerbaijani economy. Development of industry in the country, privatization of national banks, problems of water and energy supply and the need for reforms in this area, reforms in the state structures to ensure beneficial use of oil revenue, transparency in the activities of the Petroleum Fund, and other areas are major priorities in the negotiations between Azerbaijan and IMF.

President of the Republic of Azerbaijan Heydar Aliyev highly appreciated the cooperation with this international financial institution. On March 12, 1996, during his visit to Baku President of IMF Michel Kamdessu met and held negotiations with Heydar Aliyev. In a joint press-conference after the meeting, Heydar Aliyev said that talks were devoted to future cooperation between Azerbaijan and the IMF, the largest financial institution of the world. He said that IMF provides financial assistance in the form of credits for reforms, structural changes in the economy, privatization, and similar measures in Azerbaijan.

On December 4, 1998, Director of IMF mission in Azerbaijan, David Queen met Heydar Aliyev. David Queen said that the relations between Azerbaijan and IMF are on a high level. He stressed that economic growth is observed in Azerbaijan, inflation is not hifh, progress has been made in economy and the rate of manat has remained stable.

Heydar Aliyev thanked for the assistance to Azerbaijan and said that this cooperation will continue: "... We have adopted the economic reforms in Azerbaijan as a priority direction of our economic strategy. Just our views coincide and we have no differences in respect to the issues in this area. On the contrary, we have successes and you are trying to help us even more when you witness the successes of our cooperation ....."

On December 17, 2001, Heydar Aliyev met deputy director of IMF John Uykman -Li and the delegation accompanying him. John Uykman -Li explained the purpose of IMF mission in Azerbaijan. ".....One of our intentions is to view the annual figures. It is a process which IMF carries out in other countries. Another purpose of our mission is the problem of economic reforms. Economic reforms include elimination of poverty and promotion of development of the country in future." John Uykman -Li said that the results of economic reforms in Azerbaijan are inspiring and positive. He said that Heydar Aliyev and the Azerbaijani government can be proud of the achieved results.

On March 2, 2001, a state commission was established by a presidential decree with the aim of the development of the "State program on poverty reduction and economic development." For working out the program the ministry of Economic Development worked closely with IMF and World Bank. On October 25, 2001, a national conference devoted to the presentation of the "State program on poverty reduction and economic development" was held in Baku. Head of IMF mission to Azerbaijan Michael Meredin took part at the conference. Speaking at the opening ceremony, President Heydar Aliyev said that for the comprehensive development of the society, it is necessary for Azerbaijan to create an appropriate economic system of market economy. Touching upon the problem of poverty he said: "Both economy and people of our country expect a happy future. We ensured this by the work done till now and the works to be carried out in future will accomplish all this. We expect great profits from oil sector. Oil is the national wealth of Azerbaijan."

In addition to this program, experts of IMF provided technical assistance to the National Bank to establish a Card Processing Center, a state program on the development of a National Payment System and also in other directions. In order to create legislation on "Banks" and "National Bank of Azerbaijan" according to international standards Azerbaijan cooperated with IMF.

President of the Republic of Azerbaijani Ilham Aliyev also attaches great importance to cooperation with this organization. On May 26, 2004, Ilham Aliyev received the delegation of IMF headed by the Director of IMF's Middle East and Central Asian Department, John Uykman -Li.

The latter expressed his satisfaction with the meetings held in Baku, highly appreciated the development of cooperation in the oil sector between Azerbaijan and the IMF. President Ilham Aliyev said that the assistance and advice of the Fund is very useful for Azerbaijan and Azerbaijan will continue its cooperation with it and other financial institutions in future. John Uykman -Li appreciated the program for the elimination of poverty of the Azerbaijani government and at the same time declared that the IMF will continue its assistance to Azerbaijan in this matter.

John Uykman -Li appreciated the progress made by Azerbaijan in the oil and gas sector and stressed that the activity of the Petroleum Fund is an essential factor in ensuring transparency.

On December 15, 2005, President Ilham Aliyev received the delegation headed by Deputy Director of the IMF's Middle East and Central Asian Department, Julian Berengaut. Underlining the growth of economic development and a high level of macro-economic stability in Azerbaijan in 2005, Julian Berengaut said that fiscal and successful foreign policy and other factors play an important role in this process. He expressed the confidence that cooperation between Azerbaijan and the IMF will continue successfully in the future. Ilham Aliyev expressed his satisfaction with the cooperation with IMF and said that Azerbaijan has gained great successes in the economic sphere, he appreciated the growth of the budget implementation, the global energy projects and other achievements as a primary indicator of economic development.

Currently IMF began a new collaboration with Azerbaijan. In future the Fund will not have a special representative in Azerbaijan. The tenure of the last IMF representative Koba Gvenetadze in Azerbaijan expired on October 9, 2009. The main reason for the lack of IMF representative in Azerbaijan is that Azerbaijan already has sufficient experience in macro-economic sphere and economy of Azerbaijan has well manifested itself during the global economic crisis.

General historical reference was compiled on April 8, 2010.