Azerbaijan Cabinet of Ministers has commissioned the Economic Development Ministry to speed up the process on signing an intergovernmental agreement on financial cooperation to found a credit-guaranteed fund in the country between Azerbaijan and Germany.
As Trend has been told in the Cabinet of Ministers today, the forthcoming agreement will be signed between the Azerbaijani and German Governments. Heydar Babayev, Azerbaijan Economic Development Minister has been authorized to sign the agreement from the Azerbaijan party.
Agreement on Financing and Special Conditions for the Activity of the Credit-Guaranteed Fund was signed during the Azerbaijan-German intergovernmental negotiations in August, 2006.
KfW is ready to grant в'¬4 mln. to the project with в'¬3,75 mln. to be given as guarantees to establish the Fund and в'¬0,25 mln. on paying services of the consultant. The Fund must act as a settlement account in the KFW Headquarters. Azerbaijani banks will have the opportunity to borrow funds from international banks on the conditions of the crediting of KfW itself, which has rating AAA+. The capacity of the Fund will reach в'¬2,3 mln. at the initial stage. The Credit-Guaranteed Fund has no limit on receiving credit lines, however, the amount of the guarantee at the first stage will not exceed в'¬500.000. At involving the KfW guarantees, banks operating in the country cannot give a credit to the borrower to the sum of not more than в'¬150.000.