Azerbaijan to Completely Loose an Access to WB Lax Credits till 2010

Business Materials 16 December 2006 14:48 (UTC +04:00)

Within a new partnership strategy with the Azerbaijan Government considered for 2007-2010, the World Bank (WB) is about to suspend financing the country on lax conditions within the International Development Association (IDA), Cristian Petersen, WB Leading Economist for South Caucasus, said, Trend reports.

According to the WB representative, with the increase in Azerbaijan incomes, the country will gradually leave the category of countries receiving lax credits. The countries where the volume of GDP per capita does not exceed $1,280 have the right on obtaining such credits. Azerbaijan has already exceeded the above-mentioned level of the income set by WB as the key criterion to receive credits within IDA. In this connection, it would be more expedient to aim these credits to poorer countries, particularly African ones, said Mr. Petersen.

He refuted to call the terms when WB lax credits to Azerbaijan would finally expire. He said that it would depend on the level of the economic development of the country. That will occur gradually. First, they will be granted in a restricted volume, then it will be suspended at all. The limit of Azerbaijan on receiving credits within IDA in financial 2007 will expire in June 20, 2007) and the country is expected to receive s$80 mln., and $50 mln. in 2008.

The forthcoming fund will be intended mainly for the improvement of the state administering system where the weight of the technical aid is high.