Azerbaijan can refuse from OPEC credit for agricultural project

Business Materials 10 December 2005 14:19 (UTC +04:00)

The Azerbaijani government can refuse from the credit of the OPEC International Fund of Economic Development for the project on development of the agrcilture of the northeastern region of the country, the government told Trend.

The reason is commercial conditions proposed by the organization on the $7.5m credit. “The goal of the project is to reduce poverty in the regions. Therefore, the commercial conditions on such project are inexpedient,” the government said.

The Cabinet of Ministers sent the OPEC’s proposals to appropriate Ministries and establishments for consideration. The Finance Ministry recognized them inexpedient. The Fund used to grant credits with 2% interest. The Azerbaijani government has vainly waited for similar credit for 2 years.

In accordance with the OPEC conditions, the Fund finances only one project per year. The issue of the agricultural project was not solved in 2004, as OPEC allocated credit for road construction.