AIIB allocates $ 100 million loan to Azerbaijan

The Asian Infrastructure Investment Bank (AIIB) has allocated the US $ 100 million to support the measures of the Azerbaijani Government on financial incentives aimed at mitigating the negative impact of COVID-19 on the health, income, and economic opportunities of the population, as well as on macroeconomic stability, Report informs, citing the Bank's statement.

The total program cost is estimated to be USD 1,773.2 million. Through the ADB COVID-19 Active Response and Expenditure support (CARES) program under the Countercyclical Support Facility Option (CPRO), ADB has prepared to finance USD 250 million while the Government has requested AIIB to provide USD 100 million of sovereign-back financing to bridge the financing gap. The Government will finance the rest of the pandemic response package of USD 1.42 billion.

Outcome indicators (i) The COVID-19 testing capacity reached at least 10,000 tests per day and at least a cumulative of 2.6 million tests completed (2019 baseline: none); (ii) The national poverty rate maintained at or below the average of pre- COVID-19 levels (2016−2019 average baseline: 5.3 percent); and (iii) Output of MSMEs as a share of GDP maintained at or above preCOVID-19 level (2019 baseline: Output of Micro, and Small and Medium-Sized Enterprises (MSMEs) as a share of GDP was 23.3 percent).

The proposed program structure comprises of three Countercyclical COVID-19 Pandemic Response Measures: A. Enhancement the Government's COVID-19 response and health system; B. Expansion of social protection for the poor and vulnerable; and C. Assistance to impacted economic sectors to prevent job losses from an economic downturn due to COVID-19 mitigation and prevention measures.

Notably, on June 29, 2015, 57 countries signed an agreement on establishing the AIIB in Beijing (China). On the part of Azerbaijan, Finance Minister Samir Sharifov signed the deal. Official Baku's membership was ratified on June 24, 2016.