Azernews.Az

Preliminary projects funded by the World Bank and the European Bank for Reconstruction and Development (EBRD) to enhance Azerbaijan's energy system are nearly ready for signing, Finance Minister Samir Sharifov stated in an interview with "Report," as cited by Azernews.

"Implementation of these projects, in turn, will prevent the country's energy network from being exposed to certain negative effects," emphasized Sharifov.

He added that the preparation of projects with international financial institutions, their evaluation, and other related processes are currently underway. "As a result of this activity, relevant agreements are expected to be signed," he said.

Sharifov noted that Azerbaijan has decided to attract up to $5 billion from international financial institutions for project financing in the medium term, adding, "Of course, this is not a one-day thing."

The minister further highlighted that the foreign public debt situation in Azerbaijan is quite satisfactory. "As we know, an appropriate strategy for foreign public debt has been adopted in Azerbaijan. According to that document, Azerbaijan should adjust both domestic and foreign public debt to a certain ratio of the gross domestic product (GDP). Our foreign debt has decreased significantly. From this point of view, I think that our situation is quite satisfactory at the moment," he remarked.

It is worth noting that on October 31, the World Bank's Board of Directors plans to approve the Azerbaijan (AZURE) project for expanding the use of renewable energy sources, which is worth $294.5 million. On September 11, the EBRD Board of Directors is expected to approve a $30 million project aimed at establishing the flexibility of the energy system needed for integrating Azerbaijan's renewable energy opportunities.

As of July 1 this year, Azerbaijan's foreign debt stood at $5.36 billion. Of this, 64.2% was owed to multilateral financial institutions, 25.9% to bonds placed in the foreign market, and 9.9% to loans from bilateral financial institutions. The debt distribution included 25.9% in Eurobonds, 35% to the Asian Development Bank, 16.7% to the World Bank, and 22.4% to other creditors.

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