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Azerbaijan does not Agree with Georgian Acquittance

Business Materials 2 October 2007 13:56 (UTC +04:00)

Azerbaijan, Baku / Trend corr. I.Khalilova / The Azerbaijani Government does not agree with Georgia who wants to regulate its foreign debt which makes up $16,189,573 proposed by the Georgian Finance Ministry. Official Tbilisi stated an early acquittance to Azerbaijan by installments at an international commission meeting on economic cooperation held in Baku on 27 September.

In compliance with an intergovernmental agreement on restructuring Georgian debt to Azerbaijan Georgia will compound in 2025. The agreement came into force in February 2007. Georgia will pay Azerbaijan $22mln taking into account an old debt and interest. Georgia ran into debt as a result of housing operations between state enterprises in 1992 and 1994.

The intergovernmental agreement on restructuring the debt of Georgia to Azerbaijan was signed in Batumi in August 2006. Repayment will be in three stages. Georgia paid some $2.7mln at the end of 2006. Some $3.239mln will be paid from 2007 to 2021. Georgia will pay the remaining sum from 2010 to 2025. The interest rate of the loan is 3% per annum.

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