Azerbaijan has launched a pilot project regarding the dividend policy of state-owned enterprises (SOEs) to modernize the management of state assets and ensure more efficient fiscal oversight.
Operative Information Center-OMM reports this citing the Ministry of Finance of the Republic of Azerbaijan. According to the ministry, the project follows an extensive comparative analysis of international practices in dividend policy, borrowing mechanisms, and fiscal risk assessment. An agreement has been reached with the International Monetary Fund (IMF) to implement methodological tools such as the "SOE Health Check Tool" and "SOE Stress Test" within the framework of this pilot phase.
This reform is part of Azerbaijan's broader strategy to improve the corporate governance of state-owned entities and increase their contribution to the national budget. By adopting IMF-standardized stress tests and health checks, the Ministry of Finance intends to identify potential fiscal risks and ensure the long-term financial sustainability of these organizations. Furthermore, a Collegium Decision has been adopted to standardize the reporting forms and data submission processes for state-owned legal entities and public legal entities to the Ministry of Finance.
In recent years, Azerbaijan has been actively restructuring its state-owned sector to align with global transparency standards. The initiative is expected to further streamline how profits are distributed and reinvested, supporting the country's non-oil economic growth and enhancing the accountability of large-scale state enterprises to the national treasury.
