ADB, Azerbaijani government to discuss external borrowing limit reduction

Business Materials 4 December 2012 18:25 (UTC +04:00)

Azerbaijan, Baku, Dec. 4 / Trend A. Akhundov /

The Asian Development Bank (ADB) and the Azerbaijani government will discuss ADB's new country strategy in early 2013, which will reflect the reduction of the limit on external borrowing by Azerbaijan in 2013, head of ADB representative office in Baku Olly Noroyono told Trend today.

The borrowing limit decreased by 1.3 billion manat, or by 62.5 per cent in 2013 compared to 2012 and was set at a level of 750 million manat.

"Of course, this decision will affect our operations in Azerbaijan," he said. "We are now preparing a strategy which must be agreed upon by both parties. We will discuss this in early 2013. As soon as we reach an understanding, it will be reflected in the new strategy."

He said that an ADB country strategy must be prepared in 2013.
Noroyono told Trend earlier that improving water and sewage systems, the construction of highways and improving transmission systems will be the main facets of the strategy.

Azerbaijan has been a member of the ADB since 1999. The ADB's active credit portfolio reaches $680 million. The bank has allocated grants amounting to $13.122 million to the Azerbaijan government and to local companies during the period of cooperation.

The ADB was established in 1966 and has 67 members. The headquarters of the bank is located in the capital of the Philippines, Manila. Azerbaijan became a member of the Asian Development Bank on December 22, 1999. The country's participation share in the bank's capital is 0.5 per cent.

The ADB's leading shareholders are Japan and the US (31.2 per cent of the total share capital), India and China (12.8 percent), and Australia, South Korea and Canada (16 percent).