Korean Bank Refuses to Fully Finance Road Project in Azerbaijan
Azerbaijan, Baku /corr. Trend I.Khalilova / Korean Woori Bank refuses to fully finance the section of the highway from Yevlakh to Ganja with a length of 88.8km, a government source stated. Although in April 2007 the Government of Azerbaijan and the bank signed a credit agreement on allocation of $180mln, the Bank is prepared to cover 30-40% of the expenses due to the limitation of the resources in Woori Bank. The Bank already notified the Azerbaijani side of this issue and suggested to transfer the functions to French BNP Paribas.
The Government of the Country has not made a closing decision. The credit of Woori Bank will be allocated for 18 years with libor+0.8 interest rate. The project provides for construction of a dual-dual highway.
The French bank stated its readiness to allocate a $400mln loan for a project to expand the highway to the Georgian border. The loan for the first project is allocated under the guarantee of the Japanese Bank for International Cooperation (JBIC) and the Japanese insurance agency Nexy. The loan is allocated for twenty years with a four year grace period and LIBOR of +0.75% rates.