KfW allocates 372 million euro for infrastructure in Azerbaijan

Business Materials 5 July 2011 13:56 (UTC +04:00)

Azerbaijan, Baku, July 5 / Trend A.Akhundov /

The German development bank KfW has provided 372 million euros in loans and 25.5 million euros in grants to develop infrastructure projects in Azerbaijan, Head of the Azerbaijani Economic Development Ministry Apparatus Samir Veliyev said at the 12th Azerbaijani-German Economic Forum on Tuesday.

Azerbaijan's cooperation with the German development bank started in 1994. Restoring power, water, infrastructure, supporting the development of the financial and banking sectors, the private sector, health, environment, etc. are the bank's strategic areas.

Since cooperation began, KfW mainly preferred to finance Azerbaijani projects for 40 years, with a grace period of 10 years and 0.75 percent per annum interest. However, in recent years the bank switched to lending under mixed conditions.

KfW Group provides loans, equity investments, guarantees, and technical assistance.

Today, KfW's partners include six private banks, two micro-finance institutions, four funds for Azerbaijani investment, and four state institutions.