The Azerbaijani government can refuse from a $300mn credit of the World Bank to be allocated under the Country Assistance Strategy for 2006/2008 FY.
"Within framework of a new CAC, financing would be conducted mainly on the basis of IBRD instead of traditional conditions of IAD. According to the WB standards, annual rate of the credit of IBRD for
such countries as Azerbaijan is 5% depending on the term of crediting. The low rates are offered while the credits are taken for the term of 10 years," the government said.
IAD allocates funds under the rate of 0.75 for the term up to 35 years with 10-year grace period.
At present the WB mission headed by the country economist, Khristos Kostopulos, which discusses plans of the government in the field of structural and other reforms as well as potential direction of cooperation is in Baku," they noted at the government.
The mission will last till 31 August. Since 1995, the bank has allocated to the country $720 mn in loans.