TODAY.AZ / Business

Azerbaijan and the World Bank to sign credit agreement

07 July 2006 [02:00] - TODAY.AZ
Azerbaijani government and the World Bank are expected to sign US$29.2mn-credit agreement on the Project of Development and Crediting of Agriculture II in September this year.

The decision on allocation of the credit was taken at the meeting of World Bank Broad of Directors on June 29, APA reports.

The WB International Development Association will allot $20.5mn of credit with privileged conditions (annual interest 0.75%) and $8.7mn with hard conditions (annual interest rate 3%).

World Bank Office in Azerbaijan told APA that the sides are now discussing the issues concerning conclusion of the agreement on allocation of credit.

The project includes two main credit components.

The first envisages funding of credit unions and $18.1mn will be spent for this purpose.

$8.5mn of this fund comes from WB's credit and $9.6mn comes from assets of revolver fund set up within preliminary project.

The second envisages crediting of agricultural structures through bank and leasing institutions and the budget is $15.7mn

Participation portion of Azerbaijani government will constitute US$13mn in financing the Project of Development And Crediting Of Agriculture II and implementation period of the project is up to March, 2011.


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