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РђZERBAIJAN AND EBRD HOLD NEGOTIATIONS ON STATE GUARANTEES FOR LOCOMOTIVE STOCK REHABILITATION CREDIT

Business Materials 11 October 2005 17:25

Аzerbaijan and the European Bank for Reconstruction and Development (EBRD) hold negotiations on state guarantees of the loan project for the locomotive stock rehabilitation of the Azerbaijan State Railway, deputy Transport Minister of Azerbaijan Musa Panahov said, Trend reports. "The Railway returns debts in due time on previous loans. Therefore, there is no problem in giving guarantees for a new credit”, Panahov said.

According to him, there are 2 options for involving the EBRD credit of $50 million.

"The issue is viewed in two ways: either commercial loan or preferential under the state guarantees. EBRD offers the commercial way. We prefer to get the loan at the LIBOR+1% rate, but the commercial credit is by 2-3% higher", - Panahov said.

Panahov has not ruled out the possibility of the negotiations process accomplishment till the year-end.

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