Azernews.Az

The Saudi Fund for Development has signed its first deal in Azerbaijan on financing trade operations through the country's banking system.

The fund signed the first credit agreement on the allocation of four million dollars for the insurance of import operations with Amrahbank JSC, a diplomatic source told Trend news agency on Thursday.

"The capital provided by the fund is mainly being provided to support imports from Saudi Arabia to Azerbaijan," the source at Amrahbank told Trend.

Established in 1993 Amrahbank offers a wide range of retail and corporate banking services and products. Placing a 49 per cent stake in the International Investment Bank in Bahrain has played a key role in the further development of Amrahbank activities. As of October 1, the bank's assets amounted to 95.5 million manat, including a credit portfolio of 73.8 million manat.

Up till now, cooperation with the Saudi Fund for Development was based on government guarantees and loans were granted to support infrastructure and social projects.

The Saudi fund has financed three projects in Azerbaijan. $9.5 million was allocated towards the construction of five schools in Baku, $18 million to the reconstruction of the Velvelichay Takhtakorpu canal and $13 million to the Yevlakh-Ganja highway.

Also, the Saudi Fund for Development provided a loan to Azerbaijan for the improvement of the water supply and sanitation system. In 2009, the fund allocated 93.75 million Saudi riyals (around $25 million) to finance the construction and reconstruction of the water supply and sanitation system of settlements and villages around Baku.