Azernews.Az

By Rashid Shirinov

The Azerbaijani government offered a loan worth175 million euros for the construction of a bridge in Montenegro in exchange for the liberation of Azerbaijani business from taxes and customs duties in this country.

Montenegrin media reported that the energy-rich Azerbaijan is ready to provide Montenegro with a credit of 3-percent interest rate with maturity of 15 years and five-year grace period. The bridge is planned to be built through the Verige strait in the Bay of Kotor.

In exchange, the Azerbaijani side seeks to get the repeal of all taxes and fees on its business in Montenegro and the goods produced in Azerbaijan.

The Finance Ministry of Montenegro stated that though it supports the improvement of bilateral economic cooperation with Azerbaijan, the exemption of Azerbaijan from taxes and customs duties is not fully acceptable.

“The degree of liberation should be defined during negotiations, but not to a greater extent than is provided by agreements with the World Bank, the European Bank for Reconstruction and Development, European Investment Bank. Exemption from customs duties, excise and taxes carries potential risks for several reasons. This practice can jeopardize the stability of the tax system,” the Ministry claimed.

Azerbaijan and Montenegro have already experienced mutual business cooperation – in April 2016, Azmont Investments, an Azerbaijani company, began the construction of the Portnovi hotel complex in Montenegro.

The hotel is planned to be commissioned in 2017; it will become a part of the first European “One&Only” resort. The complex has the area of 3,5 square kilometers, including hotel, spa-center, port for super yachts, private residences, villas, houses, shops and restaurants. The total cost of the project makes up $500 million. Thanks to the project, more than 3,000 people will be provided with job.

Overall, this is the largest Azerbaijani investment in the tourism sector made outside of the country.

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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov

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