Azerbaijan and French Bank Sign First Loan Agreement
Azerbaijan, Baku, 13 June / Trend corr. I.Khalilova / On 13 June, the Azerbaijani government and the French bank BNP Parabis signed a loan agreement on the road project from Muganli to Yevlakh, 156km in length, and to expand the Yevlakh-Zagatala-Georgian border road from two lanes to four lanes, the Transport Ministry said on 13 June. The Bank will allocate $320mln to implement the project
The government will define the final cost of project, as the feasibility study is being specified taking into consideration the inflation rate in the country. Increase in VAT in 2008 over all the imported goods, services and work, which are implemented at the expense of international loans, have an affect on the cost of the project.
Ziya Mammadov, the Transport Minister of Azerbaijan, and Sysil Bes Advani, Director of the Transport Development Department, will sign the document.
This will be the first loan agreement on traffic project with BNP Paribas .Azerbaijan has already refused from another project, which envisaged reconstruction of the highway from Muganli to Yevlakh. Bank proposed $320mln with a 14 years term, privileged four years period and libor+0,45 % rate per year.
On 13 June, the official currency rate is 0,8189 AZN/USD.
The correspondent can be contacted at: [email protected]