Baku, Azerbaijan, Apr. 10
By Fidan Babayeva - Trend:
The new powers granted to the Azerbaijani Agrarian Credit and Development Agency (AKIA) upon the presidential decrees dated April 8, 2020, are aimed at stimulating microlending in agriculture, AKIA Chairman Mirza Aliyev told Trend.
“Two decrees signed by the president on amendments to the Regulation on the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan and the Rules for the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan will facilitate the access to financing small enterprises,” Aliyev added.
"The changes allow us to increase the maximum limit on any microloans up to 15,000 manat ($8,823), extend their term to three years,” the chairman said. “According to the previous conditions, these figures reached 5,000 manat ($2,941) and the term was two years. The most important thing is that these loans are issued by banks without collateral."
“There are several reasons that will increase the interest of banks in microlending,” the chairman said. “Although microlending amount is small, operating expenses are the same as big loans. Therefore, presently, the average interest rate on microloans in the market is 25 percent.”
“Taking this into account, an interest rate is offered to the banks, which allows them to reduce costs,” Aliyev said. “The banks will be able to provide microloans, issued by AKIA with 2.5 percent, with a maximum of 12 percent. Moreover, banking risk will be partially covered by the state.”
“These changes - both the amount and term of loans, and the partial managing of banking risks by the state will lead to an increase in the number of small entrepreneurs in the field of agriculture and the strengthening of small farms,” the chairman said.
Агентство по аграрному кредитованию и развитию Азербайджана получило возможность увеличить максимальный лимит на любые микрокредиты
БАКУ /Trend/ - Новые полномочия, предоставленные Агентству по аграрному кредитованию и развитию (AKIA) указами президента Азербайджана от восьмого апреля 2020 года, направлены на стимулирование микрокредитования сельского хозяйства.