From 2006 it is planned to commence first payment on Turkish debt borrowed in 1996-97 by Azeri Ministry of Foreign Affairs upon the governments order for construction of Hotel Europe, Finance Ministry officials told Trend. Debt repayment is possible only in the event of signing the agreement with Turkish Treasury.
The agreement draft was sent to the Treasury in 2005. It stipulates the $10mln debt return within 5 years. In case the Treasury signs he agreement, $600l will be repaid during 2006.
To build the hotel, Diplomat JV was set up (American Property Ltd. and Foreign Ministry). In 2003 Azeri stock (51%) was purchased by physical person that, apart from $7.5mln investments in Hotel Europe, agreed to transfer $10mln to state budget within 6 years. These funds are directed to Turkish debt repayment.