German bank plans to grant Azerbaijan with 10m euro credit

It was announced while discussion of the draft law on the adoption of an agreement on financial cooperation in 2003-2004 between Azerbaijan Republic and the Federative Republic of Germany in a Friday meeting of the permanent parliamentary commission on economic policy of the Milli Majlis [parliament], Trend reports.

Vusala Jafarova, an employee of the Ministry of Economic Development, said that    the bill covers two issues. The first issues are linked with the deposit insurance system. Azerbaijan receives 5m euro in credit and 1m euro in grant. The second issue covers the program on the improvement of the infrastructure of Ganja and Shaki. The total budget of the project is 54m euro.

The funds will be allotted in three installments. Under the agreement the German bank will approve 10m euro to Azerbaijan as the first installment of the loan. The credit is allocated for 40 years, with 8 years grace period and 0,75% interests rate per annum.

After the discussions the draft law was recommended for the consideration at the plenary sitting of the Milli Majlis.