OREANDA-NEWS. January 14, 2010. The Baku office of KfW informed that the bank can not provide funds over lack of the agreement between the Azerbaijani Ministry of Finance, as  primary borrower, and ADIF, as final receiver on crediting.

“As the result, we do not have grounds to transfer funds and we continue waiting conclusion of secondary loan agreement between the  Ministry of Finance and the fund,” the KfW office informed.

Earlier, provision of funds was expected in October, 2009 and the ADIF executive director Azad Javadov expressed hope that the funds would be paid before the end of August.

The fund will place finances to be received from KfW in foreign banks.

Earlier, the Cabinet of Ministers granted the authorities for signing of the loan agreement with KfW to Finance Minister Samir Sharifov and the ADIF executive director Azad Javadov.

The work over the project was delayed over two technical aspects of the agreement aimed at ADIF recapitalization. The agreement signing will allow extension of a EUR 5 million loan by KfW for ADIF recapitalization already in the 1st half of 2009 KfW.

ADIF started operating on August 13, 2007. ADIF capitalization has already reached AZN 11.168 million. After funds are received from KfW, resources of ADIF are placed within the time-limit at the global financial markets, although by the present it has placed a part of funds in the U.S. Federal Reserve System.