KfW Develop Draft to Finance Agriculture in Azerbaijan
Azerbaijan, Baku / Trend corr. I.Khalilova / Natik Abdullayev, head of KfW Baku office, has stated that the German Bank of Development KfW will develop a draft on financing agriculture in Azerbaijani villages by the end of 2007.
According to Abdullayev, a report is currently being compiled regarding the results of studies held by German consultants on financing agriculture in villages in 2006. In compliance with the rules of the bank, implementation of any draft financed by KfW should be approved by the Germany Government.
After Azerbaijani-German intergovernmental negotiations held in August 2006, Germany agreed to allocate €6mln to finance agriculture in Azerbaijan.
As a result of the studies, the consultant chose Shaki, Lankaran and some villages in Ganja, and also the regions of Shaki-Zakatala and Gakh. The first stage of financing will include these regions.
The budget to finance agriculture will be by micro loans on the basis of agreements held by Azerbaijani banks. The loans will be allocated directly and without State guarantees.
Abdullayev said that the consultant, who will observe the allocation of the budget for financing will be chosen in compliance with the German-Azerbaijani Fund system. The conditions of the loans will be similar to the financing conditions of the German-Azerbaijani Fund. The number of banks will be chosen within the framework of the agriculture draft.