EBRD increases portfolio in Azerbaijan
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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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is
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