Azerbaijan, Baku, Feb. 23 /Trend, I.Khalilova/
The manager on financial projects of the German Development Bank KfW Gerald Huebner is expected to visit Baku from 1 to 11 March to review the projects implemented in Azerbaijan, the Baku office of the bank said on Wednesday.
During the visit, discussions will be conducted on the possibility to continue the project on agricultural financing in rural areas in Azerbaijan. The bank plans to allocate three million euros for the country to finance the second phase.
"These funds, as in the first phase, will be allocated as subordinated loans. Although such loans are made in the tier II capital, but its funds would be used for lending to the rural population in the regions," said in the KfW.
The cost of the first phase of the project is five million euros, of which 3.5 million euros has already been allocated. For the distribution of the remaining 1.5 million euros, KfW has selected Azerbaijani Bank of Baku, which has already been evaluated, and today it is the most potential candidate for a loan from KfW. The issue of signing the contract will also be discussed during German bank manager's visit to Azerbaijan.
Loans were distributed between two credit agencies - Bank Respublika and non-bank credit organization CredAgro. Bank Respublika received 1.5 million euro, while 2 million has been allocated to CredAgro.
Sheki-Zagatal and Gakh rural areas was covered at the first stage.
Terms of loans will be similar with terms of financing of banks via German-Azerbaijani fund.