Azerbaijan May Cancel World Bank’s Third Agricultural Credit
Azerbaijan, Baku / Trend corr I. Khalilova / The World Bank (WB) may continue financing for an adapted program on the development and crediting of agriculture in Azerbaijan on commercial conditions, that is, through the International Bank for Reconstruction and Development (a part of the WB group), said the Director General of the State Agency for Agricultural Credits at the Azerbaijani Agriculture Ministry, Razim Valiyev.
The total cost of the program is projected to be $100mln over 10 years. Within the framework of the first stage, Azerbaijan received $30mln. In 2007, implementation of the second stage began, with the WB allotting $20.5mln under special conditions.
The second stage is also expected to cover 4 years, making the third credit expected in 2011. However, in the fiscal year of the WB which ends on 30 June 2008, Azerbaijan will use the last funds of $127mln, envisaged through the International Development Association. Therefore, in further years Azerbaijan may receive only commercial crediting, Valiyev said.
Given the peculiarities of the agrarian sector, the Azerbaijani Government may even cancel the third WB credit, as the economic situation in the country enables the financing of agriculture through internal resources rather than trying to attract commercial loans.
"If the conditions are acceptable, in four years the Government will consider the possibility of the third credit or will reject it," the Director General said.