Azerbaijan, Baku / corr Trend I.Khalilova / The World Bank (WB) has confirmed the amount of privileged loan for Azerbaijan in the amount of $131mln, which can be used by the end of June 2008, Baku office of the WB said. This capital can be directed towards full or partial financing of 6 or 7 projects.
Donors of the International Development Association (IAD) usually confirm the portfolio for the beneficiary countries of the privileged loan for three years. The three-year period expires in June 2008. Unless the projects are approved at the Board of Directors of the WB, Azerbaijan will lose access to the loan.
In the 2009 fiscal year, which commences from July 2008, the World Bank (WB) will cease financing Azerbaijani projects on the basis of the conditions of the IAD., Azerbaijan had been receiving credits from the WB for two years in line with the IDA and International Bank for Reconstruction and Development.
The IDA funds are intended mainly to improve the State administration system, where the technical assistance holds considerable special weight, as well as social projects which require the increase of skills.
According to the assessment of the IDA member-countries, the amount of preferential credits for Azerbaijan for the 2007 fiscal year totaled $79.4mln, but the Government could not use them.
The portfolio in the WB Partnership Strategy with Azerbaijan (2007-2010), in line with the IBRD, is expected to be raised up to $659mln. In addition, it is expected to increase by up to $257mln in 2008 and $442mln in 2009.
The portfolio of the IDA until 2010 is planned to be increased up to $804mln, with $557mln of that from 2006. It is notable, because the Government of Azerbaijan and the WB mention the decrease of the privilege credits for the country. The gross amount of the new strategy approved by the WB Board of Directors on 7 December 2006 totals $1.260mln.