Azerbaijan, Baku / corr Trend I.Khalilova / The French bank BNP Paribas presented to the Azerbaijan Government a credit agreement on two road projects - expansion of an automobile road from Hajigabul to the Georgian border from two to four stripe and the reconstruction of the automobile route from Zakatala border to (Shamakhi-Ismayilli-Gabala-Shaki-Gakh-Zakatala-Balakan), the Azerbaijani Transport Ministry said.
Total loans by BNP Paribas for these project will comprise $900mln.
The Ministry announced that the bank stated its eagerness to present $400mln though the Japanse Bank for International Cooperation and the Japanese insurance agency Nexy. The second loan is divided into parts, one ($380mln) under the guarantee of the Israeli insurance corporation ASHRA, and the second ($120mln) on commercial terms of the French bank.
The loan is allocated for twenty years with a four year grace period and LIBOR of +0.75% rates. The insurance services for the loan will be provided by ASHRA. Nexy is expected guarantee the loan under the rate of libor+0.75% for the term of 20 years with 4-5 year grace-period.