Last week the Cabinet of Ministers of Azerbaijan presented to the President an agreement with the World Bank (WB) on the first Poverty Reduction Support Credit (PRSC). It is planned to sign an agreement immediately after the adoption by the head of state and issue of special authorities to the Finance Minister, Avaz Alakparov.
In difference to similar credit of IMF, which Azerbaijan refused in June, WB credit has an exact mechanism of distribution, which is used for financing the concrete projects on poverty reduction: construction of new hospitals and schools, conduct of training for doctors and teachers.
Having refused from the IMF credit for poverty reduction, Azerbaijan for its part is interested receiving the WB loan.
Though in exchange the country was to implement the obligations set for it in different sectors of economyи, WB recommendations and proposals. In general, the WB is satisfied with the cooperation with Azerbaijan, asserting that the country tries to follow the instructions of the bank in the direction of defense of Azerbaijan’s interests.
The World Bank has set the implementation of the second credit on Institutional Development Technical Assistance (IBTA-2), as well as the Program on Poverty Reduction Support Credit (PRSC).
Christos Kostopoulos, a senior economist of the WB, arrived in Baku on Monday and will stay till 31 August. "An agreement on first PRSC, approved in the amount of $20m, is still to be signed," the Baku Office of the WB said.
Finally, wide specter of structural reforms on PRSC is directed at poverty reduction in the country. Will it produce effect, the time will show.