Azerbaijan, Baku / Trend corr I. Khalilova / State Agency on Agriculture Credits at Azerbaijan Agriculture Ministry signed an agreement with three banks selected as agents within the framework of 'Development of Azerbaijan's North-East Regions' project of the International Fund for Agricultural Development (IFAD), according to one of the banks. The project involves Muganbnk, Texnikabank, and Turanbank.
Turanbank was the agent for the first IFAD's agricultural project.
The project an agreement on which was signed in Baku on 27 July 2006 covers four Azerbaijan's north-eastern regions - Khyzy, Siazan, Divichi, and Absheron.
Credit component in the project makes up $4.8mln. Maximal sum of the credit to be allotted to the agent banks for financing of projects on intra-agricultural melioration work is $25,000, minimal - $1,000.
The total cost of the project makes up $25.148mln with Azerbaijan's initial share of $2.69mln. Azerbaijani Government refused to attract the funds of the OPEC Fund ($7.9mln), for the Funds increased the annual interest rate for Azerbaijan from 0.75% to 5%. As a result, the Government decided to allot that part from the public budget.
Some $10mln will be used for melioration, $6mln for establishment of water users' association, $4.8mln for crediting, and the remaining funds for maintenance of the working group.