Signing Agreement on Credit-Grant Fund Set Up to Take Place within Azeri President Visit to Germany

Business Materials 30 January 2007 17:03 (UTC +04:00)

The Agreement on financial co-operation in Credit-Grant Fund set up in Azerbaijan with the German Development Bank KFW is planned to be signed during the visit of the Azerbaijan President, Ilham Aliyev, to Germany in the mid of February.

The Head of the KFW Baku Office, Natig Abdullayev, informed Trend that it will be signed by the Governments of Azerbaijan and Germany. The Minister of Economic Development of Azerbaijan, Heydar Babayev, has been empowered to sign the agreement from the Azerbaijan side. In August 2006 a contract had been signed with the German Development Bank KFW on financing and proper conditions of the activities of the Credit-Grant Fund.

KFW stands ready to present в'¬4 mln, with в'¬3,75 mln as grant for creation of the Fund and в'¬0,25 for payment of consultation services. At first stage, the amount of the fund will amount to в'¬2,3 mln. The Credit-Grant Fund has no limitations to attract the credit lines of the banks, but the amount of the guarantee will not exceed в'¬500,000 in the first stage. While attracting the guarantees of KfW, the banks can not issue one credit in amount of more than в'¬150,000.