(MENAFN- Trend News Agency) TBILISI, Georgia, May 2. Internationalfinancial institutions are given preference in financing thedevelopment of the Middle Corridor, Azerbaijani Finance MinisterSamir Sharifov told reporters on the sidelines of the 57th ADBAnnual Meeting in Tbilisi, Trend reports.
"The extent of private sector engagement in Middle Corridordevelopment hinges greatly on the scale of the anticipatedprojects. Currently, the focus lies predominantly on infrastructureendeavors, particularly the construction of railways and roadnetworks. Thus, it constitutes a significant investment in physicalinfrastructure," he said.
Sharifov noted that the private sector finances such projects,but they require rather large sums of capital.
"The repayment terms for this funding should be sufficientlylong. Therefore, private financing under these circumstancesappears relatively costly. As a result, priority is given toalternative financing sources, primarily international financialinstitutions such as the World Bank, the Asian Development Bank,the European Development Bank, and the Asian InfrastructureInvestment Bank, as well as various development funds in severalArab countries, among others. These financial institutions offerlonger loan durations and lower interest rates, which is crucialfor small-scale projects, as ultimately, the loans must be repaid,"he explained.
The minister remarked that securing loans may not posesignificant challenges.
"But to repay, there must be a targeted long-term strategy," headded.
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