Azerbaijan might join the category of countries receiving credits only on commercial conditions since 2007
After reaching defined levels of per capita income in 2006, Azerbaijan might exceed the credit limits identified by the World Bank for the countries entitled to get beneficial credits and can be excluded from that group. Azerbaijan may loose beneficial credits already in 2007, according to the government. There is a level which enables the country to take loan only from the International Bank on Development and Reconstruction (IBDC).
According to the World Banks existing practice, countries like Azerbaijan using both types of loans, should use WB credits for the social projects, whereas infrastructure projects are to be financed by IBDC finances. In compliance with the world standards, countries with the medium development level use IBDC credits for all types of project, from agriculture to infrastructure.
Three projects on beneficial conditions are expected to take place in Azerbaijan in 2006 - court-legal system reforming, healthcare and agricultural development and crediting. However, conditions on these projects would have to be reviewed in case if negotiations on them will not be completed by the beginning of financial year 2007 on July 1 2006. Though, mixed WB and IBDC credits are already offered for healthcare and agriculture projects.