SOFAZ advised to reassess liquidity, credit risks in debt portfolio

Azerbaijan's Chamber of Accounts has recommended that the State Oil Fund of Azerbaijan, SOFAZ, reassess liquidity and credit risks in its debt obligations and money market sub-portfolio, Report informs.

This was stated in the chamber's report on the results of an audit of the formation and use of SOFAZ funds in key areas.

According to the report, the total value of the bond, deposit and cash sub-portfolio in SOFAZ's investment portfolio stood at $21.914 billion at the end of 2025. At the end of 2024, the figure was $28.157 billion.

In 2025, the return on the debt obligations and money market sub-portfolio stood at 4.7%, while its share in the investment portfolio was 29.8%.

Taking into account the decline in the share of highly rated and highly liquid assets in the debt obligations and money market sub-portfolio, the Chamber of Accounts considered it appropriate for SOFAZ to regularly assess liquidity and credit risks, determine the optimal level of strategic liquidity reserves and review risk limits.