Azerbaijan, Baku, July 30 /Trend A.Hasanov/
SOCAR is negotiating with the Ministry of Finance on a restructuring of number of loans of Azerkimya, including their possible cancellation. It is indicated in the financial report of SOCAR last year, published on its website.
"SOCAR is negotiating with the Ministry of Finance and expects positive outcome," the report said.
According to the report on February 17, 2003, Ministry of Finance provided a loan facility of 12.4 million manat to the Azerikimya PU for the period until 1 January 2008. The loan bears annual interest rate of 1 per cent. The amount outstanding under this facility as at December 31, 2011 and 2010 was 12.4 million manat.
On November 20, 2003, Ministry of Finance provided a loan facility of 9,4 million manat to Azerikimya PU for the period of 4 year until November 20, 2007. The loan bears annual interest rate of nil per cent. The amount outstanding under this facility as at 31 December 2011 and 2010 was 9.4 million manat.
On July 15, 2009, Ministry of Finance provided a loan facility of 8,584 million manat to Azerikimya PU for the period of 4 year until December 1, 2013. The loan bears a nominal annual interest rate of nil percent. The amount outstanding under this facility as at 31 December 2011 was 5,515 million manat.
During the period from December 29, 2008 through September 30, 2009 SOCAR's subsidiary Azerikimya PU before its acquisition by SOCAR obtained several loans from IBA in total amount of 39.2 million manat. After combination with the Group the terms of these loans were renegotiated with the IBA. According to the revised terms these loans bear annual interest rate of 3 per cent and mature on 16 May 2012. This borrowing is collateralized by a special cash deposit of $100 million (78.650 million manat) placed with IBA. The amount outstanding under this facility as at 31 December 2011 was 30.8 million manat.
The total liabilities of SOCAR subsidiary amounted to 58.115 million manat at the end of 2011.
According to the decree of Azerbaijani President Ilham Aliyev 'On improvement of governance arrangements in the petrochemical industry', signed on April 2, 2010, the state company Azerkimya becomes subordinated to the SOCAR (State Oil Company of Azerbaijan).
According to the decree by the Azerbaijani president dated April 22 on the amendments and additions to the decree dated January 24, 2003 on improving the structure of the State Oil Company of Azerbaijan, it was decided to create an Azerkimya production unit under SOCAR.
Official exchange rate on July 30 is 0.7856 AZN/USD