The Government of Azerbaijan selected State Kapital Bank as agent-bank to issue subsidies in the agriculture sector to compensate 50% of the cost of the fuel and chemical fertilizers acquired by the farmers, Trend reports.
The Chairman of the Executive Committee of the bank, Rufat Rzayev, said on February 12, 2007 that the State gives preference to the development of the infrastructure of Kapital Bank in all its social projects practically. The regulation shows that the subsidies should be realized vis plastic cards. Presently the bank has enough number of ATM and POS-terminals. Presently Kapital Bank has installed 192 ATMs in the Republic, with 119 in the regions of the country and 370 POS-terminals. The plan of the bank includes acquiring additional 80 ATMs and 1000 POS-terminals in 2007.
Issuing the subsidies will begin after specifying the real number of the farmers. Rzayev said that according to the preliminary calculations, their number equal 800,000, but it is not planned to book cards for all of them. The pensioner-farmer may use the pension cards. In addition, refugees and internally displaced people of Azerbaijan also have cards to received food money.
To decrease the expenses of the bank, it is planned to install POS-terminals in filling stations so that the farmers could receive fuel without using cash money. Presently one of the unresolved questions remains partial compensation of the expenses of the bank due to the participation in the project. Kapital Bank intends to cover significant part of the expenses itself, Rzayev said.
The expenses of the bank are linked with the production and delivery of the cards. Accordingly it needs to pay off customs tariffs, VAT.
According to him, mainly the bank will fulfill the function of service bank by receiving money from the State budget on the base of the documents presented by the farmers.