Avaz Alakbarov, the Azerbaijani Finance Minister, and Charles Griffin, the Director of the WB Social Development Department in the South Caucasus, signed an agreement on poverty reduction support credit (PRSC) in Baku on Friday. The agreement was concluded to implement the Azerbaijani President’s 25 August instruction 975.
“In accordance with the agreement, the International Development Association, a member of the WB group, will allot a $19.2m credit to the country,” the Ministry said. The fund will be directed to the financing of public budget deficit.
The fund will be transfered to the account of the Finance Ministry after legalization of the agreement, the WB Baku representative office told Trend.
The PRSC was approved by the Directors Board of the bank on 17 May. It is issued for 35 years with 10-year grace period and 0.75% annual rate. Per 5% of the credit is envisaged for education and medicine, per 40% - energy, trade and industry, 10% - finance.
Besides, Alakbarov and Griffin signed an intention letter on grant for the Fund for Institutional Development of Electron Governmental Purchases System. The International Bank of Reconstruction and Development will issue $299,000 grant for development of the Fund, the Finance Ministry noted.