WASHINGTON The International Monetary Fund's Executive Board on Friday approved a $100-million loan over three years to Azerbaijan.

The IMF's approval makes $10 million available immediately to support the Caucasus nation's economic reform program.

The board of the World Bank group, the joint decision-making body of both financial institutions, had earlier endorsed Azerbaijan's poverty-reduction paper. But the board "expressed concerns about the poverty and unemployment rates in Azerbaijan," according to a statement.

The board said Azerbaijan should be more effective in using its wealth from oil extraction to provide a welfare safety net. The country also needs to be more effective in developing the non-oil sector of its economy to create employment and reduce poverty, DAP quoted the board as saying.

"After a very recent start, the Azeri government has come a long way in designing a strategy that addresses the country's most pressing needs," said Shigeo Katsu, the World Bank director for Europe and Central Asia.

Katsu said Azerbaijan, a former Soviet Republic, has posted positive gross domestic product growth and maintained economic stability over the past four years.