Germany to allot 16m euros to Azerbaijan

News and Press Release
Originally published
The German government will allocate a 15 million Euro loan and a 1 million Euro grant to Azerbaijan according to the agreement on financial co-operation, concluded by the governments of Azerbaijan and Germany on Friday.

The document was signed by Azerbaijani Minister for Finance Avaz Alakbarov and German Ambassador to Azerbaijan Detlef Lingemann. A group of German specialists are expected to visit Azerbaijan shortly to carry out work within the agreement.

Under the agreement, Azerbaijan will receive 5 million Euros as a loan and a 1 million Euro grant for implementation of the project on "Establishing a system for insuring bank deposits", a source from the Finance Ministry said. The project, to be implemented by the National Bank, is aimed at insuring public deposits placed in banks.

Under the document, a 10 million euro loan will be allocated for the "Open communal infrastructure" project to be implemented by the "Azersu" joint-stock company. In total, German is expected to allot 37 million Euros and Switzerland 10 million Euros for the project, which envisions improving water supply in Ganja and Shaki districts.

The loans will be allocated for 40 years with a 10-year grace period and annual interest rate of 0.75%.

Germany has allocated a total of 300.5 million Euros in loans to Azerbaijan so far, including 160.5 million Euros within financial and technical co-operation, while the remaining 140 million Euros through the European Union.

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