The agreement on the approved monetary and monetarist policies of the Russian Federation and the Azerbaijan Republic

of September 30, 1992

The Russian Federation and the Azerbaijan Republic which are hereinafter referred to as with the Parties

being guided by general interest in preserving and further development of economic cooperation for the benefit of the people on mutually advantageous and equal basis,

aiming at strengthening of national cash systems and protection of economic interests of the population and business entities from inflation,

considering the purpose achievement of free convertibility of ruble,

recognizing need to refrain from any actions causing damage each other

agreed as follows:

Article 1

In the territory of the states which signed this agreement, general legal means of payment is the ruble emitted by the Central bank of the Russian Federation.

In the territory of the Azerbaijan Republic, along with ruble, legal means of payment the "manat" emitted by National Bank of the Azerbaijan Republic within the total amount of ruble issue is.

Any restrictions for the address of ruble are not allowed.

Article 2

In case of acceptance of one of the Parties of the decision on introduction of national currency it is performed according to specially signed agreement and taking into account the obligations which are earlier accepted by each of the Parties.

Article 3

The cross debt obligations of the Parties which arose after July 1, 1992 and reflected in the correspondent accounts opened by the Central bank of the Russian Federation and National Bank of the Azerbaijan Republic each other are subject to settlement, and if necessary are drawn up as external public debt.

Calculations for mutual commodity deliveries are perfromed according to the international trade and banking practice providing balance of calculations at the interstate level and excluding possibility of automatic financing of deliveries to damage to economic interests of the states - trading partners.

Article 4

Repayment of the debt obligations determined in the first paragraph of Article 3, is made in rubles or as agreed by the parties in freely convertible currency and commodity deliveries.

For the purpose of compensation of losses from nonequivalent exchange and imbalance of calculations the inter-government credit or other obligations assumed in the international practice can be as agreed by the parties drawn up.

Debt repayment of one Party to other Party is performed according to the procedure and in the terms determined by the special bilateral intergovernmental agreement.

Percent on remaining balance of the amounts of principal debt are determined by the intergovernmental agreement.

Article 5

The parties will promote settlement of cross debt obligations of business entities of the Parties.

Article 6

The Azerbaijan Republic recognizes exclusive right of the Central bank of the Russian Federation to perform ruble issue of cash and to regulate ruble credit issue which amounts are determined by approval of National Bank of the Azerbaijan Republic. The parties will render to the Central (national) Banks every possible assistance in implementation of the approved monetary policy.

The Russian Federation undertakes obligations on ensuring need of the Azerbaijan Republic with ruble cash liquidity.

Article 7

The parties shall coordinate mutually the actions directed to achievement of free convertibility of ruble, perform necessary interaction with the international bank and financial institutions.

Article 8

The parties apply the single ruble exchange rate established by the Central bank of the Russian Federation in their territory. In the territory of the Azerbaijan Republic the rate of manat establishes National Bank of the Azerbaijan Republic.

Rules of determination of ruble exchange rate in the relation to foreign currencies including to monetary units of the states which left ruble zone are established by the Central bank of the Russian Federation together with National Bank of the Azerbaijan Republic.

The parties will take the coordinated actions for maintenance of ruble exchange rate and, in case of need, to carry out joint currency interventions.

Article 9

The parties assume responsibility for maintenance of stability of ruble and proceeding from it perform the budget, tax, monetary and monetarist policies.

Article 10

The parties will suggest the Central bank of the Russian Federation and National Bank of the Azerbaijan Republic to sign the special interbank agreement on the monetary and payment and settlement relations following from this agreement.

Article 11

The parties will inform each other concerning conditions of their agreements with other states on questions which are subject of this agreement.

Article 12

This agreement does not pursue infringement of any interests of the third states of ruble zone.

Article 13

This agreement becomes effective from the date of exchange of notifications on accomplishment of the interstate procedures by the Parties necessary for its entry into force, and will remain in force before the expiration of two months from the date of when one of the Parties notifies other Party in writing on the intention to stop its action.

It is made in Baku on September 30, 1992 in duplicate, everyone in the Russian and Azerbaijani languages, and both texts are equally authoritative.

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