Finance

Finance

Azerbaijani Parliament preparing for ratification of loan agreement signed with Serbia

16 March 2012 09:43 (UTC +04:00)

Baku. Ali Ahmadov â€“ APA-Economics. The Parliament of Azerbaijan has today discussed draft law on ratification of loan agreement signed between Azerbaijan and Serbia on highway construction.

Speaking about the agreement, Head of Department of the Ministry of Economic Development Sahil Babayev noted that the amount of the loan made â‚¬300 mln: â€œThe loan has a 15-year term, including a grace period of 3 years, with interest rate set at 4% per annum. The Azerbaijani government allotted the loan on preferential terms. The loan is allocated by a state guarantee and that is why assets of Serbian Government have been taken hostageâ€.

Babayev said that economic state and loan portfolio of Serbia had been investigated and results of this investigation fully meet the interests of Azerbaijan.
Ministryâ€™s official also noted that, serious issues on Armenia were reflected in the loan agreement. So, the agreement excludes any cooperation of Serbia with Armenia.

Babayev also noted that, Serbiaâ€™s economic condition was better than some other European countries. Its external public debt makes 40% if GDP.

â€œDuring the signing of loan agreement, high level political and economic cooperation between two countries were considered. So that, Serbia supports Azerbaijan in all international organizations. It also supports Azerbaijan in Nagorno Karabakh conflict. Besides, Serbia supported Azerbaijan when it became a member of UN Security Council and supported additional 10 states to support Azerbaijanâ€.

Babayev says Serbiaâ€™s membership to EU was already noted and in turn, Azerbaijan can use Serbia to export its products to European market.

He also noted that, construction of highway in Serbia would be conducted by Azerbaijani AzVirt Company: â€œthis company was chosen by Serbiaâ€.