CBA, EBRD sign swap agreement worth $200M

In order to increase the access of the real sector to financial resources, Central Bank of Azerbaijan (CBA) and European Bank for Reconstruction and Development (EBRD) have signed a swap agreement worth $200 million, Report informs, citing the CBA.

Of this, $50 million is planned to be given to the local companies, including small companies that faced difficulties.

According to the information, along with supporting business facilities affected by the pandemic, the agreement will promote the extension of the use of the derivative financial instruments in the country and use of these instruments as an alternative financing instrument. This is an achievement gained as a result of CBA’s strategy, close cooperation with the international organizations, and the use of international framework contracts on derivative financial instruments in the monetary and capital market of the country.

At the same time, CBA and EBRD continue cooperation on the issue of manat bonds in local markets and conformation of the legal frame of the derivative financial instruments market with the international standards.

Azerbaijan has been cooperating with the EBRD for a long time. To date, the EBRD has allocated $3.3 billion to Azerbaijan on 170 projects. The bank has also provided technical support to the improvement of financial statements and the development of more than 1,000 companies.