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Azerbaijan to get another loan to launch first satellite

ICT Materials 16 July 2011 16:25

Azerbaijan, Baku, July 16 / Trend, H.Valiyev /

A credit agreement worth about $ 80 million is expected to be signed for the next three months to launch the Azerbaijani first telecommunication satellite into orbit, a source close to the project told Trend.

At present, the Azerbaijani Communications and IT Ministry has started negotiations on a loan to finance the launch of the Azerbaijani first telecommunication satellite Azerspace. It will be launched into the orbit by French Arianspace.

The negotiations on the loan from the French export credit agency COFASE have been already begun with French banks Sosiete Generale and SMBC.

The cost of launching the satellite is $94 million, 85 percent of which will be provided to the Azerbaijani side in the form of a loan, and the remaining 15 percent will be paid by state funds.

The deal will be financed with a two-year period for the use of funds and a ten-year repayment period.

The cost of manufacturing the Azerspace satellite is $120 million, 85 percent of which will be provided to the Azerbaijani side in the form of a US Ex-Im loan, and the remaining 15 percent will be paid by state funds.

Azerspace's manufacturer is Orbital Sciences Corporation.

The loan will be allocated to Azerbaijan by the US Ex-Im, based on funds borrowed from the major French bank BNP Paribas.

The agreement will be signed on a tripartite basis between the Azerbaijani government, U.S. Ex-Im and French bank BNP Paribas. The work on a loan agreement is at the final stage and both sides clearly expressed their willingness to sign a loan agreement this month.

The deal will be financed by US Ex-Im with a two-year period for the use of funds and a ten-year repayment period.

Azerspace's manufacturer is Orbital Sciences Corporation.

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