Azerbaijan to ratify loan agreement with Serbia

Azerbaijan has evolved from a borrowing to a lender country, Chairman of the Committee on Economic Policy Ziyad Samadzade said on Friday at a meeting of the Azerbaijani parliament.

At a meeting of the parliamentary committee the loan agreement between Azerbaijan and Serbia signed on Feb. 1 was discussed. Loan worth 300 million euros was issued for 15 years with a three-year grace period and an annual rate of four percent for construction of road in Serbia.

"Active process of Azerbaijan investing abroad continues. Azerbaijan is implementing investment projects in Turkey, Russia, Moldova and other countries," Samadzade said.

MP Vahid Ahmedov said monetary reserves of Azerbaijan today allow to implement similar projects.

"Due to cheapening of euro and dollar value of the assets of the State Oil Fund of Azerbaijan is gradually decreasing, so that Azerbaijan should make more use of such projects," said Ahmedov.

Department head in the Ministry of Economic Development Sahil Babayev said this agreement provides for rather stringent conditions for the Serbian side and protects the interests of Azerbaijan.

"Usually, when a contractor and the lender represent one country, the interest rate on the loan is low, so these four percent of the loan are favorable conditions for Azerbaijan. In addition, according to the agreement, the Serbian side was barred from attraction of Armenian companies to the project," Babayev said.


/Trend/