ECONOMY
GOVERNMENT OF AZERBAIJAN & INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT SIGNE LOAN AGREEMENT
At the ceremony on this occasion, First Deputy Prime Minister Yagub Eyubov spoke on cooperation between the IBRD and Azerbaijan noting that the last years’ rapid growth of the country’s GDP restricted the possibilities to receive soft loans from the WB’s International Development Association representing. Thus, majority of loans will be lent by IBRD.
According to Mr. Eyubov, the agreement envisages IBRD’s lending $ 48 mln to Azerbaijan. The objective of the project is to improve the efficiency of the power transmission operation in Azerbaijan through technical and institutional strengthening of the generation/ transmission utility. The loan’s term is 20 years with grace period of 8 years plus 0,5% Libor rate.
Having pointed out the importance of the agreement, Mrs. Donna Dowsett-Coirolo stressed the need for reliable power supply is increasing as economy of Azerbaijan is being developed. According to her, the government’s encouraging the economic development in Azerbaijan follows the policy towards improvement of the people’s living standards and poverty reduction. Energy sector is one of the President Ilham Aliyev and his government ‘s priorities for the. That is why we are pleased with entering this new partnership, she said.