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

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engaging in sports exchanges, but that the Ministry's current
budget is too small to fund such programs.




DERSE