Azerbaijan's Central Bank, EBRD sign swap agreement
The Central Bank of Azerbaijan (CBA) and the European Bank for Reconstruction and Development (EBRD) have concluded a swap agreement totaling $200 million in order to increase access to financial resources of the real sector during the coronavirus pandemic (COVID-19), according to CBA.
Thus, the EBRD will gain new opportunities to provide credit support to local companies in national currency, gaining reliable access to local currency. It is estimated that $50 million (85 million manat) out of 200 million will be channeled to local firms, including smaller viable enterprises, faced with temporary difficulties this year.
According to the EBRD's report, Azerbaijani companies can now benefit from loans denominated in the local currency manat (AZN) provided by the EBRD thanks to an agreement with the CBA.
The EBRD has secured reliable access to AZN liquidity, in the form of swap transactions worth a total of $200 million, and will continue local currency lending to companies, said the EBRD's report.
The agreement is part of the EBRD’s stepping up support for Azerbaijani companies as the country's economy faces the double challenge of the coronavirus outbreak and the global oil market shock, noted the report.