Vusal Gasimli, Executive Director of the Center for Analysis of Economic Reforms and Communication (CAERC), stated that Azerbaijan has mobilized over 1.1 billion manats to combat the coronavirus pandemic. When a special operational headquarters was established under the Cabinet of Ministers by order of President Ilham Aliyev, an initial allocation of 10 million manats was made. Currently, more than 86 million manats have been collected for the Support Fund for Combating Coronavirus from the state budget, legal entities, and individuals. Additionally, by decree of President Ilham Aliyev, 1 billion manats from the state budget have been allocated to mitigate the pandemic’s impact on the economy. Azerbaijan has also contributed 5 million USD to the World Health Organization to support global pandemic efforts.

The “corona crisis budget” of over 1.1 billion manats in Azerbaijan is expected to continue growing. At present, the mobilized 1.1 billion manats represents 2.2% of the country’s non-oil GDP.

Support for the Support Fund for Combating Coronavirus from the state, businesses, and the public is a strong example of social solidarity and national unity, in line with the appeals of President Ilham Aliyev and First Vice President Mehriban Aliyeva.

While Azerbaijan is acting independently in the fight against coronavirus, more than 80 countries have applied to the International Monetary Fund for financial assistance to combat the pandemic. The IMF and World Bank have also called on the G20 to provide debt relief for 76 countries with per capita national income under 1,175 USD. These funds can be used to fight coronavirus in low-income countries. While central banks in developed countries can afford monetary easing, developing countries do not have this flexibility. Moreover, since the onset of the corona crisis, investors have withdrawn 83 billion USD from developing countries, making it more difficult for them to manage the crisis. Plans are underway to provide Special Drawing Rights (SDR) assistance and liquidity support through swap lines to developing countries. In a global context of economic recession and developing countries struggling alone against the pandemic, Azerbaijan demonstrates resilience in managing global shocks and the pandemic.

The mobilized “coronavirus budget” in Azerbaijan covers three main areas: support for affected sectors, entrepreneurs, and salaried employees; social programs; and expenditures related directly to combating the pandemic.