Azerbaijan plans serious austerity measures for 2016-19

The plan will include cutting public spending on "unnecessary” projects and increasing financial discipline, Finance Minister Samir Sharifov told a cabinet meeting broadcast on state television.

The package should also lead to a major consolidation of the banking sector and strengthen trust in local banks.

The management of state-run companies will be improved and brought in line with international standards. The government will also stimulate the privatization of state assets.

Azerbaijan, the third-largest crude producer in the former Soviet Union, relies on oil exports for 70 percent of government revenue. Oil and natural gas account for over 90 percent of exports.

The Central Bank devalued manat against the US dollar twice last year and burned through more than two-thirds of its foreign currency reserves to support the national currency.