BAKU, Azerbaijan, September 21. The Central Bank of Azerbaijan (CBA) has decided to keep the refinancing rate at 7.25 percent, the lower limit of the interest rate corridor at 6.25 percent, and the upper limit of the interest rate corridor at 8.25 percent, Trend reports.
“The decision to keep the refinancing rate unchanged was made taking into account the presence of actual and projected inflation at the target level (4±2 percent) and the dynamics of internal and external factors of inflation,” the information from the CBA says.
Meanwhile, it was reported this week that Azerbaijan and Iraq are discussing the organization of direct payments within the framework of expanding cooperation in the financial and banking spheres.
Furthermore, it was reported that the European Bank for Reconstruction and Development (EBRD) is considering financing the construction project of a solar power plant with a capacity of 315 MW in the Neftchala district of Azerbaijan. The project aims to increase the share of renewable energy sources in the energy system of Azerbaijan, reducing dependence on natural gas and reducing CO2 emissions by 314,000 tons annually.
Additionally, it is noted that the project, the cost of which is $280 million, will receive a loan of up to $80 million from the EBRD.
Besides, the EBRD plans to finance the construction of a 445 MW solar power plant in the Bilasuvar district of Azerbaijan. The project aims to increase the share of renewable energy in the country, reducing dependence on natural gas and reducing carbon dioxide emissions by 442,000 tons per year.
The project worth $380 million will be supported by a loan of up to $100 million from the EBRD.
The projects will be implemented by Abu Dhabi Future Energy Company PJSC (a subsidiary of Masdar). Loan approval is expected on October 22.
The possibilities of investments of private Chinese companies in Azerbaijan were discussed this week.
