ADB, Azerbaijan to sign loan agreement

The Asian Development Bank (ADB) is planning to sign a $250 mln loan agreement with Azerbaijani government for Improving Governance and Public Sector Efficiency Program – Subprogram 2, Report informs referring to ADB Baku office.

In December 2017, ADB Board of Directors approved allocation of $500 mln for Improving Governance and Public Sector Efficiency Program. This loan was divided into two parts with $250 million for each. The fund is allocated for support to a number of measures for deepening of structural reforms towards further economic diversification.

"The first tranche of the loan was allocated right after the agreement was signed. The second tranche is conditioned by continuation of the indicated reforms," the government said.

ADB believes  that the Azerbaijani government has implemented 22 reforms in the fields on corporate governance in state finance, state companies and in financial sector: "One of the most important measures was the application of modern corporate rule and standards in state companies."

ADB Baku office said that those reforms attach importance for Azerbaijan's economy for a long-term period.

Today, ADB Board of Directors made a decision to allocate the second tranche: "So, there is a ground for signing of the loan agreement by the end of 2019."