SOCAR gets huge loan from central bank
Azerbaijan`s Central Bank has allocated a 750
million manat ($937 million) concessional loan to the state oil
company SOCAR, its board chairman has said.
Elman Rustamov said the loan had been allotted for seven years, with a 3% annual interest rate. SOCAR will spend most of the funds on repaying its foreign debt. The first two years are a grace period during which the company will be repaying only interest.
According to Rustamov, the interest rates as part of the foreign debt that SOCAR is paying this year are two to three-fold higher than in the previous years, and tough requirements are in place for repaying these funds. The oil sector and financial crisis that has sent shock waves through economies worldwide have significantly affected SOCAR`s economic plans. Nonetheless, the impact of the crunch is now abating and growth trends are being seen.
Rustamov noted that the Central Bank`s lending assistance is sufficient to ensure further implementation of SOCAR`s projects and to normalize its foreign debt situation.
``Crude prices are now increasing in world markets, and this allows SOCAR to continue both its internal operations and investment projects,`` Rustamov said.
Considering the ongoing world financial crisis, the Azerbaijani parliament had authorized the central bank to disburse loans starting this year.
Elman Rustamov said the loan had been allotted for seven years, with a 3% annual interest rate. SOCAR will spend most of the funds on repaying its foreign debt. The first two years are a grace period during which the company will be repaying only interest.
According to Rustamov, the interest rates as part of the foreign debt that SOCAR is paying this year are two to three-fold higher than in the previous years, and tough requirements are in place for repaying these funds. The oil sector and financial crisis that has sent shock waves through economies worldwide have significantly affected SOCAR`s economic plans. Nonetheless, the impact of the crunch is now abating and growth trends are being seen.
Rustamov noted that the Central Bank`s lending assistance is sufficient to ensure further implementation of SOCAR`s projects and to normalize its foreign debt situation.
``Crude prices are now increasing in world markets, and this allows SOCAR to continue both its internal operations and investment projects,`` Rustamov said.
Considering the ongoing world financial crisis, the Azerbaijani parliament had authorized the central bank to disburse loans starting this year.
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