French Bank and Finance Ministry to Continue Talks on Credit Terms for Road Expansion from Hajigabul to Georgian Border
Azerbaijan, Baku / corr Trend I.Khalilova / The visit from the experts of the French bank BNP Paribas and Israeli insurance corporation of ASHRA to Azerbaijan is coming to an end on 29 June, a source at the Finance Ministry of Azerbaijan stated. Initially their visit was scheduled for 10-12 of June.
Talks with the Azerbaijan Government to simplify the terms of credit allotted for the expansion project of the highway from Hajigabul to the Georgian border, that would enlarge the highway from two to four lanes, remain unresolved.
The loan is allocated for twenty years with a four year grace period and a LIBOR rate of +0.75%. The Ministry requested the credit be allocated without LIBOR. The insurance services for the loan will be provided by ASHRA.
BNP Paribas intends to announce its solution in a week. The Finance Ministry announced that Azerbaijan will insist on a cut of the credit rates from LIBOR+0.75% to 0.75% a year.
Azerbaijan asks for simplification of the credit terms. The Ministry announced that the bank stated its eagerness to present $400mln for expansion of the motorway from Hajigabul to the Georgian border for the period of 20 years with four to five years grace period. ASHAR offered insurance services on the loan.