Azerbaijan ratifies loan agreement with Serbia
Azerbaijan, Baku, April 6 / Trend A. Akhundov /
The Azerbaijani Parliament has today ratified the loan agreement signed between Azerbaijan and Serbia on February 1, 2012.
The Azerbaijani government has allocated a loan worth 308 million euros for 25 years with a three-year grace period at an annual rate of four per cent per annum to construct a road in Serbia. This agreement envisages tough conditions for the Serbian side and protects the interests of Azerbaijan.
"Usually, when a contractor and a creditor represent one country, the interest rate on the loan is low," head of department at the Ministry of Economic Development Sahil Babayev told Trend earlier. "So, four per cent on the loan is a favourable condition for Azerbaijan. Moreover, according to the contract, the Serbian side is forbidden from attracting Armenian companies to the project."
He said that the AzVirt Company was chosen as a contractor from the Azerbaijani side and state company for road construction 'Corridor Serbia'from the Serbian side.
The construction of the E-763 highway sectors; Lzhig-Bolzhkovchi, Bolzhkovchi-Takovo and Takovo-Prelzhina will be financed through this loan.