Parliament has also lowered the budget deficit to 6.9 percent from 7.6 percent and the government's debt to 54.6 percent of Gross Domestic Product (GDP).

The bank said that the new forecast would also reflect an improved outlook for Armenia and Georgia.

More fighting on Azerbaijan-Armenia border, Baku says may enforce border on own

AIIB said that the loan would be co-financed with the  Asian Development Bank (ADB) as the lead co-financier.