Georgia to pay Azerbaijan $2.7mln upon signing debt restructuring convention

Business Materials 22 June 2006 15:33 (UTC +04:00)

Official Tbilisi stated its readiness to pay Azerbaijan $2.7mln right upon signing the convention on debt restructuring, Trend reports with reference to Georgian Ministry of Finance. Georgia also requests accelerating internal procedures to sign the convention the soonest, which was declared most recently during Georgian officials visit to Baku. Yet, Finance Ministry shall get authorized to sign such agreements, while Georgians are.

The delay with signing the agreement were initially linked to staff changes in Georgian government, now official Baku awaits settling procedures for signing customs agreement between the countries.

Finance Ministry officials said the debt will be repaid in cash based on restructuring schedule. Georgian debt to Azerbaijan amounts $16,189,573. According to the new variant, a part of debt in $3.239mln shall be repaid between 2007 and 2021. Besides, repayment of $2.7mln of the debt will start upon said agreement coming in effect. This payment will be effected in two stages by the end of 2006. Third part of the debt shall be repaid in 2010-2025. Rate on this debt total 3% annul interest. This debt accumulated in 1992-1994 as a result of trade operations.