The World Bank will announce coming into force the credit for the support of the poverty reduction (PRSC) after the judicial acknowledgement from the AzerbaijanвЂ™s Justice Ministry, the World Bank Baku office told Trend. Only after this procedure Azerbaijan will receive the first tranche of the PRSC loan of $20 million, which allocation was approved by the bankвЂ™s Board of Directors on 17 May 2005.
President of the country endorsed the loan agreement between the World Bank and the government of Azerbaijan on 15 December 2005.
The PRSC total amount is $60 million. The loan funds are designed for covering the budget deficit and allocated under the terms of the International Development Association. This preferential loan is allocated for 35 years with the payment delay of 10 years and the interest rate of 0вЂљ75% per annum.
The talks between the government of Azerbaijan and the World Bank finished on 2 April 2005. The interests of the World Bank at the talks were represented by the bankвЂ™s senior economist in the region of Europe and Central Asia Christian Petersen.