Baku, Azerbaijan, Jan.9
By Huseyn Valiyev - Trend:
The State Fund for Development of Information Technologies under the Ministry of Communications and Information Technologies of Azerbaijan has signed contracts with the banks selected as authorised agents for funding start-up projects, the State Fund's Executive Director, Elchin Zeynalov told Trend on Jan.9.
Pasha Bank, Bank Respublika, Demir Bank, Rabita Bank and Bank BTB were selected as the fund's authorised banks, according to Zeynalov.
"Projects will be financed from the state budget. Entrepreneurs in the ICT sector may apply to the authorised credit institutions for funding after receipt of the funds envisaged for this purposes in the state budget for 2014. This is expected by late January. This year five million manat will be allocated to the fund to support start-up projects," Zeynalov said.
Issuance of small, medium and large loans as well as grants from the State Fund is envisaged for financing the project.
The amount of a small loan can range from 10,000 to 50,000 manats (from $12,750 to $63,751) with a term of three years, medium - from 50,000 to 500,000 manats (from $63,751 to $637,511) and up to five years, large - from 500,000 to five million manats (from $637,511 to $6.375.114) to 10 years.The interest rate on the loans will not exceed five per cent per annum.
The grant's maximum amount may reach 300,000 manats ($382,506) for 36 months. Small grants are provided at a rate of 10,000 to 100,000 manats (from $12,750 to $127,502), medium - from 100,000 to 200,000 manats (from $127,502 to $255,004), and large - from 200,000 to 300,000 manats (from $255,004 to $382,506).
Each submitted start-up project will undergo a thorough examination. All decisions will be made at Supervisory Board level which is a very important factor in the transparency of the fund. In turn, this will allow the selection of the best projects. Along with support towards entrepreneurship, the fund will also provide the necessary consulting services to start-up participants.
One of the important aspects of the fund's activity is to commercialise innovative ideas both at intra republican level and outside the country.
A decree on the establishment of the State Fund for Development of Information Technologies under the Ministry of Communications and Information Technologies of Azerbaijan was signed by the President of Azerbaijan on March 15, 2012.
The main objective of the fund is to hold public policies for the development and support of small enterprises in the scientific and technical sphere, providing them with direct financial assistance and training which in turn will help to open up new jobs in the country.
The official exchange rate on Jan.9 is 0.7844 AZN/USD.
Translated by M.L.
Edited by S.M.