Inflation to step up unless Azerbaijan takes effective measures

"But the government takes serious the problem," Vitali Kramarenko, IMF officer for the Middle East and Central Asia, told a press conference, APA reports.

He insisted that the government should, to some extent, limit the expenditures, increase interest rates, and pay attention to the monetary policy.

He added that the government can use the finances to come from the recent energy price rise for various purposes.

"The earlier the fiscal policy is amended the easier it will be to curb the inflation," he noted.

Mr. Kramarenko has had meetings at President's Office, Cabinet, Finance, Economic Development, Taxes Ministries, Social Protection Fund, Statistical Committee, National Bank, SOCAR, SOFAZ, Baku Stock Exchange, Accounting Chamber, BP Azerbaijan, WTO office in Baku and some commercial organizations. The meetings focused on 2006 macroeconomic indicators and prospects and economic policy for medium term of 2007.

IMF Executive Director for Azerbaijan Thomas Moser and Deputy Director for Near East and Middle Asia Lorenzo Peres has already arrived Baku.