TODAY.AZ / Business

Fitch: Gov’t to help Azerenergy repay foreign loans

07 December 2016 [14:54] - TODAY.AZ

By  Trend


Azerbaijan’s government will provide equity injections of $172 million and 204 million euros to Azerenerji JSC, Azerbaijani national energy operator, to assist it in repaying its foreign currency loans over 2016-2025, Fitch Ratings reported Dec. 7.

The official exchange rate on Dec. 7 is 1.7369 AZN/USD and 1.8625 AZN/EUR.

Fitch Ratings has affirmed Azerenerji's long-term Issuer Default Rating (IDR) at 'BB+' and short-term IDR at 'B' with negative outlook, according to the rating agency’s report.

Over 70 percent of Azerenerji's total debt as of late 2015 was denominated in foreign currencies, mainly in euros, US dollars and Japanese yen, the report said.

As of late 2015, Azerenerji's debt increased to 2.4 billion manats from 1.5 billion manats, the rating agency said.

Azerbaijani government also agreed to provide a 360 million manats low interest, long-term loan to Azerenerji so that it can pay its tax due, according to the report.

Given the USD/AZN exchange rate of 1.55-1.7 over 2016-2018, Azerbaijan’s GDP growth is forecast at 2.3-1.8 percent over 2016-2019, the report said.

URL: http://www.today.az/news/business/156715.html

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