Azerbaijan, Baku /corr. Trend I.Khalilova / In the 2009 fiscal year, the World Bank (WB) will cease financing Azerbaijani projects on the basis of the conditions of the International Development Association (IDA) because Azerbaijan has already been absolved from the group of countries receiving privileged credits, a source at the Cabinet of Ministers of Azerbaijan stated. For already two years, Azerbaijan had been receiving credits from the WB in line with the IDA and International Bank for Reconstruction and Development.
The final $20mln may be received by Azerbaijan on preferential conditions in the 2008 fiscal year which began on 30 June 2007. These funds are intended for the project of accountability in the corporate and State sector. "If we can afford to present the project to the approval of the WB Board of Directors by October 2007, we will be able to obtain these preferential funds," the same source stated.
According to the assessment of the IDA member-countries, the amount of the preferential credits for Azerbaijan for the 2007 fiscal year totaled $79.4mln, but the Government could not use them.
The IDA funds are intended mainly for the improvement of the State administration system, as well as social projects.
The countries where the amount of the GDP per capita does not exceed $1,280 may appeal for preferential credits. Azerbaijan has already exceeded this level. According to the forecasts of the Minister of Economic Development of Azerbaijan, Heydar Babayev, this year, the figure is expected to reach $3,000. For the first half of the year, the figure reached $1,461.8.
The portfolio in the WB Partnership Strategy with Azerbaijan (2007-2010) in line with the IBRD is expected to be raised up to $659mln. In addition, it is expected to increase by up to $257mln in 2008 and $442mln in 2009.
The portfolio of the IDA until 2010 is planned to be increased up to $804mln, with $557mln of that from 2006. It is notable, because the Government of Azerbaijan and the WB mention the decrease of the privilege credits for the country. The gross amount of the new strategy approved by the WB Board of Directors on 7 December 2006 totals $1.260mln.
