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Azerbaijan Passes upon Kuwaiti Fund’s Loan

Business Materials 17 November 2007 15:12 (UTC +04:00)

Azerbaijan, Baku / corr Trend I.Khalilova / The Azerbaijan Government refuses from the cooperation with the Kuwait Fund for Economic Development at current procedures, when Azerbaijan has repeatedly appealed to change. Along with the state guarantee this financial institute also requires additional security for project financing, which can be the National Bank of Azerbaijan (NBA) assets.

"It contradicts the Azerbaijani legislation the NBA is answerable for the Government's debts and they cannot be given under the security," the Government said.

Following this institute's adherence to these procedures, the Azerbaijani Government passes upon the receiving projects from the Kuwaiti Fund. The Fund is interested in financing projects in the sphere of water and road.

The Kuwaiti Fund financed only one project on the construction of circular road in Baku, allotting 14.5mln Kuwaiti dinars in 2003. The government passed upon the loan for the construction of the 46.2km long Kurdamir-Ujar automobile road, because the Fund put forward new requirement.

The amount of the credit to be granted by the Kuwaiti Fund was 4.2 mln. Kuwaiti Dinars (about $14.4 mln). The financing of the rest part of the project was to be taken by the Government of the Country.

WB undertook financing the given section of the highway allocating $70mln in this respect after the Kuwaiti Economic Development Fund repudiated to sponsor it.

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