The government also agreed to provide a AZN360m low interest, long-term loan to Azerenerji so that it can pay its tax due.
The state has also continued to provide equity injections, totalling around AZN970m over 2009-2015, to partially fund its investment programme (around 47% of total capex over this period).
Azerenerji remains exposed to foreign currency fluctuations, as over 70% of its total debt at end-2015 was denominated in foreign currencies, mainly in euros, US dollars and Japanese yen, in contrast to almost all local currency denominated revenue. At end-2015, Azerenerji's debt increased to AZN2.4bn from AZN1.5bn, mainly on the back of local currency weakening. Following the manat devaluation in 2015, the state approved the provision of an equity injection to Azerenerji to partially cover its scheduled foreign debt repayments, as the majority of debt is guaranteed by the state.
Azerenerji's standalone profile has weakened, due to its worsening financial performance and weak liquidity.