Azernews.Az

The European Bank for Reconstruction and Development (EBRD) is interested in granting loans for the development of the construction sector and food industry in Azerbaijan, head of the EBRD office in Baku Neil Mckain has said.

``With regard to the transport sector, we allocate funds for the development of regional transport infrastructure in the country, as the basic domestic infrastructure is practically developed,`` Mckain told Trend news agency.

In 2011 EBRD decided to allocate $750 million for the implementation of large-scale transport projects on the reconstruction of key regional highways or roads bordering Georgia and Iran.

Mckain noted that negotiations to open credit lines for Azerbaijani banks are also underway.

``It is planned to expand the list of banks, to which loans will be allocated,`` Mckain said, declining to cite the names of the banks due to continuation of the negotiation process.

Mckain said the EBRD is also working in the area of allocating mortgage loans to two Azerbaijani banks - Unibank and Muganbank.

EBRD works with nine banks, six microfinance institutions and three non-bank credit institutions in Azerbaijan. The bank has implemented 70 projects in the domestic financial sector.

The current EBRD portfolio in Azerbaijan amounts to $608 million. The total volume of credits issued by the bank in 2011 amounted to $34 million.

The bank signed loan agreements for nine projects in Azerbaijan`s public sector totalling over $1.229 billion as of January 1, 2012.

Implementation of the eight projects through the EBRD loans totalling $479.45 million has been completed, while the project to repair and upgrade roads, under which the bank has allocated $750 million, will begin this year.

EBRD`s loans amounting to $205.8 million had been repaid by January 1, 2012. Azerbaijan fully repaid the loans allocated under the four projects. These envision construction of Yenikend hydro-power plant ($53.2 million); modernization of air navigation ($13.7 million); reconstruction of Azerbaijani and Transcaucasian railway network ($20.2 million); and improvement of water supply system of ``Greater Baku`` ($22.7 million).

EBRD is a financial institution whose funds are used to support democracy and market economies in 30 countries in Central Europe and Central Asia. It is owned by 61 countries and two international organizations.