Azerbaijan, Baku, July 2 /Trend A.Hasanov/
Signing of the agreement on III concessional loan in the amount of five million euros for the development of small and medium-sized enterprises (SMEs) in Azerbaijan is expected by the end of this year, project manager for the German-Azerbaijan Fund (GAF) Eduard Schmidt told Trend on Monday.
"The contract has already been prepared and is under consideration by the Ministry of Economic Development of Germany. We expect to receive it soon," Schmidt said.
The Bank intends to provide a third loan in the national currency of Azerbaijan and take the risk of exchange rate changes. Like the previous two loans, KfW will provide third loan on favorable terms - 40 years with a grace period of ten years at an annual rate of 0.75 percent.
These funds, like the first two loans, designed for financing of SMEs through the German-Azerbaijan Fund.
Since 1999, the German bank provided two tranches of €8.7 million to GAF. Spending them and the loan of EBRD completed, and therefore, currently the local banks are financed from the revolving account. The current portfolio of placement from the GAF varies from €11.5 million.
GAF partners are of Bank of Baku and Unibank (since March 2001), January 2003 - Parabank and Bank Respublika, September 2004 - Azerdemiryolbank and AGbank, December 2006 - Rabita Bank and Mugan Bank, February 2007 - Nikoil Bank.