Baku, Azerbaijan, July 6
By Maksim Tsurkov – Trend:
Azerbaijan has offered Montenegro a loan worth 175 million euros to finance the construction of a bridge over the Verige Strait in exchange for the release of the Azerbaijani business from taxes and customs duties in this country, Montenegrin media reported.
The report says that the Azerbaijani government is ready to provide the loan to Montenegro at a rate of three percent with a repayment period of 15 years and a grace period of five years to build a bridge over the Verige Strait in the bay of Kotor.
Montenegro’s Ministry of Finance said that it supports the strengthening of economic cooperation with Azerbaijan, but the exemption from taxes and customs duties requested by the Azerbaijani side, are not completely acceptable.
“The level of exemption should be determined during negotiations, but not to a greater extent than is provided by the agreements with the World Bank, the European Bank for Reconstruction and Development and the European Investment Bank,” says the ministry.
Exemption from customs duties, excise duties and taxes carries potential risks for several reasons, explained the ministry adding that this practice could jeopardize the stability of the country’s tax system.
Currently, Azerbaijan is implementing the Portonovi resort project in Montenegro. Portonovi resort is one of the largest projects in the territory of Montenegro. The complex will have a hotel, a spa, a port for super-yachts, residences, villas and houses, shops and restaurants. The resort is expected to be commissioned in 2017-2018. The project cost exceeds $ 500 million.
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