The Asian Development Bank (ADB) approved a $500 million loan to help Azerbaijan maintain social spending, create jobs and diversify its economy to mitigate the adverse impact of a crash in oil prices.
"ADB’s support is important for Azerbaijan’s economy, and will help to promote sustainable development and inclusive growth over the longer-term. Transforming Azerbaijan into a dynamic and diverse economy will need major improvements in public sector efficiency, the ease of doing business and competition," the director general of ADB’s Central and West Asia Department, Sean O’Sullivan, said.
According to the ADB message, the loan will contribute to a $1.4 billion stimulus package, which is boosting social assistance for around 3.7 million people, or more than one third of the population, increasing the wages of public sector employees, increasing benefits for retirees and low-income families, Trend reports.
In addition to the loan, ADB will provide technical assistance of $1.2 million to help design reforms to macro fiscal management, state-owned enterprises, and the finance sector.
