Azerbaijani Parliament Ratifies Agreement with French Bank
Azerbaijan, Baku, 28 October/ corr. Trend I. Khalilova / On 28 October Milli Mejlis of Azerbaijan ratified an agreement with French Bank BNP Paribas, which allocated a $320 mln loan to finance the highway construction projects (section of the third superhighway-M3) from Muganli to Yevlakh and Yevlakh-Zaqatala-Georgian border (section M-4).
Introducing the agreement deputy speaker of Azerbaijani Parliament Valeh Aleskerov said that getting loan from such a leading bank as BNP Paribas amid the world financial crisis is a positive factor.
It testifies that Azerbaijan has a stable economical development, financial system and exchange reserves.
Aleskerov added that the total value of the project will comprise $400 mln, 20% of which will be repaid out the Azerbaijani government's share and the rest trough the BNP Paribas loan.
The loan will be allocated during 48 months in four installments on a six-month rate Libor+0.45%. Repayment of the loan will begin at the end of the receipt term (after four years) of the loan during 10 years.
Aleskerov said that according to the world experience the loan will be accompanied by the insurance support of the Israeli corporation ASHRA. The total value of the insurance will come to $15.786 mln.
Loan agreement between BNP Paribas and the Transport Ministry was signed in Baku on 13 June
This is the first loan agreement with BNP Paribas on road project.
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