EBRD in­creases port­fo­lio

Azer News - - Business - By Sara Is­rafil­bay­ova

In­vest­ment by the Euro­pean Bank for Re­con­struc­tion and De­vel­op­ment (EBRD) in Azer­bai­jan in the first four months of 2018 in­creased by 253 mil­lion eu­ros and at the end of April 2018 to­taled 3.07 bil­lion eu­ros.

The bank re­ported that as of Jan­uary 1, 2018, the EBRD al­lo­cated 2.817 bil­lion eu­ros to Azer­bai­jan.

The share of the pri­vate sec­tor in to­tal in­vest­ments is 26 per­cent, 7 per­cent­age points less than at the be­gin­ning of the year.

Dur­ing the pe­riod, Azer­bai­jan paid 290 mil­lion eu­ros to the EBRD. As a re­sult, the to­tal amount of pay­ments in­creased by 14.6 per­cent and amounted to 2.27 bil­lion eu­ros. The Bank’s op­er­at­ing as­sets in Azer­bai­jan amounted to 986 mil­lion eu­ros, an in­crease of 41.3 per­cent com­pared to the be­gin­ning of the year.

The num­ber of ac­tive EBRD projects in Azer­bai­jan was 48, and in to­tal, the EBRD has im­ple­mented 165 projects in Azer­bai­jan. The port­fo­lio of ac­tive projects at the end of April 2018 amounted to 1.429 bil­lion eu­ros, which is 21.5 per­cent more than at the end of last year.

Al­most half of the EBRD’s ac­tive port­fo­lio in Azer­bai­jan - 707 mil­lion eu­ros or 49.5 per­cent – fell on the en­ergy projects, 42.5 per­cent or 607 mil­lion eu­ros – on the in­fra­struc­ture projects, and 4.9 per­cent (70 mil­lion eu­ros) – on the in­dus­trial, com­mer­cial and agribusi­ness projects. An­other 3.1 per­cent (45 mil­lion eu­ros) fell on projects in­volv­ing fi­nan­cial in­sti­tu­tions.

The EBRD is an in­ter­na­tional fi­nan­cial in­sti­tu­tion founded in 1991. As a mul­ti­lat­eral de­vel­op­men­tal in­vest­ment bank, the EBRD uses in­vest­ment as a tool to build mar­ket economies.

The Bank was es­tab­lished to sup­port coun­tries of the for­mer East­ern Bloc in the process of es­tab­lish­ing their pri­vate sec­tors. To that end, it of­fers "project fi­nanc­ing" for banks, in­dus­tries and busi­nesses, for new ven­tures or ex­ist­ing com­pa­nies.

The EBRD has al­lo­cated more than €3 bil­lion to Azer­bai­jan for im­ple­men­ta­tion of 160 projects since 1992.

One of the main pri­or­i­ties of the EBRD in Azer­bai­jan for 2017 is sup­port the lo­cal cor­po­rates with di­rect fi­nanc­ing. The EBRD con­tin­ues to pur­sue in­vest­ments in en­ergy projects, es­pe­cially where there is a gap to im­prove ef­fi­ciency and en­ergy se­cu­rity.

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