One Credit Only to Be Received within Foreign Crediting Limit till the End of 2006

Business Materials 2 December 2006 12:25 (UTC +04:00)

To date, the limit on foreign borrowings has been spent at $550 mln. $600 mln. allocated into the State Budget for 2006 is expected to be spent till the end of the year, Trend reports referring to a source in the Finance Ministry of the Country.

Another credit from Germany KfW on a project of construction of transmission lines AzDRES Imishli is expected to be obtained by Azerbaijan till the end of the year. KfW will grant в'¬30 mln. for its implementation.

The highest level of the foreign debt is annually allocated into the budget package and it forms from the credit obtained against a state security. Credit given by IMF does not refer to it, since the credit is given for short term and is transferred to the countries currency reserves. Starting from this year, Azerbaijan has rejected to receive credits from IMF.

The limit on foreign borrowings for 2007 has been extended up to 1,2 bln. AZN ($1,4 bln.).