ADB’s interest rate for Azerbaijan reviewed

Business Materials 7 December 2005 20:32 (UTC +04:00)

The Asian Development Bank (ADB) Representation clarified today that its interest charge on non-concessional lending to Azerbaijan is currently set at LIBOR+0.08%. “Nevertheless, the ADB’s rate is more attractive than the rates of other banks i.e. EBDR and IBRD,” Matthew Westfall, the head of the Baku representation told Trend.

This highly favorable rate reflects the benefit of ADB’s sub-LIBOR funding costs and lower administrative charge. Over the last 2 years ADB’s interest rate ranged from LIBOR+.05% to LIBOR+0.08%.

ADB holds only three approved projects in the total amount of $52m. The Bank holds negotiations witrh the Azerbaijani government on the country Strategy and Program update 2005-2006, which proposes a public sector lending program in excess of $300m, as well as technical assistance grants in the amount of $7.8m.