AMBASSADOR'S INTRODUCTORY CALL ON MINISTER OF

C O N F I D E N T I A L SECTION 01 OF 02 BAKU 001108 SIPDIS SIPDIS E.O. 12958: DECL: 07/28/2016 TAGS: PGOV PREL SCUL SOCI ELAB KISL AJ SUBJECT: AMBASSADOR'S INTRODUCTORY CALL ON MINISTER OF YOUTH AND SPORT AZAD RAHIMOV REF: BAKU 383 Classified By: AMBASSADOR ANNE E. DERSE PER 1.4(B,D) ¶1. (C) SUMMARY: In her introductory call on the Minister of Youth and Sport Azad Rahimov, the Ambassador discussed the importance of people-to-people exchanges and cultural diplomacy targeted at youth. Rahimov shared his concern for school-age children, noting that children who feel empty are more susceptible to influence from extreme religious sects, such as Wahabbism. He said that the Ministry of Youth and Sport (MOYS) is working to combat unemployment and drug usage. The Minister outlined his proposed changes to the mortgage lending rule, to make purchasing a home more affordable for young people. He discussed MOYS plans to continue the construction of Olympic sports centers and to build six youth centers in the regions. Rahimov expressed interest in engaging in sports exchanges, but said that the small budget of the MOYS is a constraining factor. END SUMMARY ¶2. (C) During her July 19 introductory call on the Minister of Youth and Sport Azad Rahimov, the Ambassador reviewed U.S. priorities for the bilateral relationship: cooperation in the Global War on Terror and regional and global security and stability, global energy security, and building freedom and democracy through political and economic reform. She highlighted the important role played by the Ministry in giving young people hope in their future. The Ambassador noted that the governments of the U.S. and Azerbaijan have developed a strong relationship, and emphasized the important role played by people-to-people exchanges and cultural diplomacy in further strengthening the relationship. ¶3. (C) Rahimov explained that for the purposes of the Ministry, youth is defined as persons from 16 to 35 years of age, which comprises sixty-six percent of the entire population of Azerbaijan. He said that the Ministry has proposed that this definition be changed to encompass persons from 18 to 30 years of age. Rahimov said he would like to reach out to school-age children, so as to not lose them to other influences. He specifically mentioned the threat of extreme religious sects, such as Wahabbism, becoming more appealing to children who feel empty and are trying to fill the void with something meaningful. Rahimov said that for older youth, unemployment and drug usage are big problems the Ministry is trying to combat. ¶4. (C) Concerned about the difficulties young people face in purchasing a home, the Minister shared his proposals for changes to the mortgage lending rule. The current rule requires a down-payment of thirty percent of the total price and annual payments of twelve percent, with a maturity of 15 years. Rahimov explained that this amount is too high for most young Azerbaijanis. He said that out of the 45 mortgages given so far under the current rule, 40 of the beneficiaries worked for higher-paying U.S. companies. The average salary for mid-level jobs on the local economy is much lower, making it difficult for most young people to afford a home. Rahimov said the MOYS had proposed that the requirements should be lowered to a down-payment of fifty percent of the total price, with annual payments of six percent, with a maturity of 25 years. (Note: A press report stated that the GOAJ had agreed to increase the mortgage loan maturity from 15 to 25 years, but did not mention the other proposed changes from the MOYS). ¶5. (C) The Minister continued, saying that current prices do not allow the private sector to create affordable housing. In his opinion, the GOAJ should create a type of subsidy - the housing itself would not be subsidized, but some of the inputs would be. Rahimov envisioned the GOAJ providing free land and utilities and subsidizing construction. Then, he argued, these properties could be sold at half the average market price. This would make housing more affordable for groups such as young families, soldiers, and invalids. ¶6. (C) Rahimov informed the Ambassador of several MOYS developments and plans, including recent agreements on youth and sports policy that the Ministry entered with Georgia, Moldova, Bulgaria, and Saudi Arabia. He discussed the success of the existing Olympic sports complexes and shared existing plans to build ten more in 2007. With a bigger budget, Rahimov mentioned, the MOYS would be able to provide these facilities for free, which would provide access to families with financial constraints, a particular problem in the regions. He also shared his plan to build six youth centers in the regions, and the possibility of constructing small sports halls and football stadiums throughout the country. Rahimov spoke highly of instances in which Azerbaijani sports teams competed in the U.S., and said that he is interested in BAKU 00001108 002 OF 002 engaging in sports exchanges, but that the Ministry's current budget is too small to fund such programs. DERSE