CBA intends to minimize provision of directed credits
Azerbaijan, Baku, April 13 / Trend N.Ismayilova /
The Central Bank of Azerbaijan (CBA) is going to minimize the use of an instrument to provide liquidity support to the country's strategically important businesses, CBA Deputy Chair Aftandil Babayev said.
"This tool is one of the areas of anti-crisis policy to provide the country's strategically important businesses liquidity in case of shrinking of the external financing channels and increasing internal risks. But the CBA aims to remove this tool from the circulation, and we can already see its share drop on the market, " Babayev said.
He said only part of the funding still needed to transfer to enterprises, but the bank doe not plan to issue new loans, he said. Today, the balance of the target bank's loan hits 216 million manat, whose bulk fell to the loans to AZAL and Azerenergy.
"Some 67 million will be transferred to AZAL, a tranche of 30 million manat will be allocated to Azerenergy and 33 million manat to Azeraluminium," he said.
The CBA issued four target loans, of which only funding for SOCAR has been completed, since it received funds through one tranche.
The first loan of 750 million manat allocated to SOCAR for seven years at two percent per annum, second loan (202 million manat) - Azeraluminium for 10 years at three percent per annum, third (300 million manat)- Azerenergy and fourth (312 million manat)- AZAL.