$17.9m loan to boost agriculture sector
Azerbaijan has received a $17.9 million loan from the International
Fund for Agricultural Development (IFAD).
The funds will be channeled into boosting agriculture in the country`s western regions. The loan agreement will go into force after being approved by the Azerbaijani government.
The project, which covers Shamkir, Tovuz, Aghstafa and Gazakh districts, is estimated to be worth a total of $30 million. About $11m of the amount will be allocated by the government.
IFAD had previously allocated a $1m grant to boost agriculture in western Azerbaijan.
Razim Valiyev, who heads the Agriculture Ministry`s Credit Agency, said only loans disbursed under commercial terms may be drawn from the Fund in the future.
"So far, not a single country has managed to acquire funds worth the amount we have received from IFAD to develop its agriculture sector. Whereas such loans make up $12m, at the most, the Fund has allotted loans to the tune of $31.4m to Azerbaijan."
Since the start of its cooperation with IFAD, Azerbaijan has received credit terms for 40 years, with a 20-year grace period and a 0.75% annual interest rate. But the Azerbaijani government says that, given the country`s rapid economic growth, there is no longer any need for restrictive loans.
The funds will be channeled into boosting agriculture in the country`s western regions. The loan agreement will go into force after being approved by the Azerbaijani government.
The project, which covers Shamkir, Tovuz, Aghstafa and Gazakh districts, is estimated to be worth a total of $30 million. About $11m of the amount will be allocated by the government.
IFAD had previously allocated a $1m grant to boost agriculture in western Azerbaijan.
Razim Valiyev, who heads the Agriculture Ministry`s Credit Agency, said only loans disbursed under commercial terms may be drawn from the Fund in the future.
"So far, not a single country has managed to acquire funds worth the amount we have received from IFAD to develop its agriculture sector. Whereas such loans make up $12m, at the most, the Fund has allotted loans to the tune of $31.4m to Azerbaijan."
Since the start of its cooperation with IFAD, Azerbaijan has received credit terms for 40 years, with a 20-year grace period and a 0.75% annual interest rate. But the Azerbaijani government says that, given the country`s rapid economic growth, there is no longer any need for restrictive loans.
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