Azerbaijan Fulfilled All Domestic Procedures to Restructure Georgian Debt

Business Materials 21 February 2007 17:41 (UTC +04:00)

Azerbaijan , Baku /corr. Trend I. Khalilova/ Azerbaijan President, Ilham Aliyev approved an intergovernmental agreement on restructuring the Georgian debt to Azerbaijan , Trend reports.

The text of the Presidential order being published today says that the Cabinet of Ministers of the Country was commissioned to take necessary measures to put the above-mentioned agreement into effect, the Foreign Office of the Country - to send a notice to the Georgian Government to implement necessary domestic procedures due to putting the above-mentioned agreement into force.

The Intergovernmental Agreement of Restructuring the Georgian debt to Azerbaijan was signed in Batumi on August 17, 2006. Taking into account the major debt and accumulated interests, Georgia will have to pay $22 to Azerbaijan . The debt will be returned by cash on the basis of the schedule of the restructuring. The total amount of the Georgian debt to Azerbaijan is $16 189 573. It formed in 1992-1994 due to some economic operations between the state-run companies of the two states.

According to the agreement, the debt will be paid in three stages. The first stage envisages paying a part of the debt at $2,7 mln. by 2006. which has already been implemented. At the second stage, Georgia will pay $3,239 mln. for 2007-2021. The returning of the third remaining part of the debt is to be commenced in 2010 and completed in 2025. The interest rate of the debt is 3% per annum .