New SME development platform being created in Azerbaijan (PHOTO)
Baku, Azerbaijan, April 18
A protocol of intent on mutual cooperation was signed between the Agency for the Development of SMEs (small and medium-sized enterprises), the Financial Market Supervisory Authority (FIMSA) and the Azerbaijan Banks Association (ABA), Trend reports.
According to the document, the Agency, FIMSA and ABA will create a joint platform for discussing issues of state financial support for the financing of SMEs, as well as discussing the effectiveness of existing mechanisms used in private credit and financial organizations. They will also explore the possibilities of applying innovative and alternative financing mechanisms based on international experience in financing SMEs, cooperate in order to bring SME securities to markets and encourage the use of appropriate market-based instruments.
The parties will also carry out educational measures to improve the financial literacy of SMEs in the regions, as well as joint measures for organizing forums and roundtable discussions on the development of SMEs.
Speaking at the signing ceremony, Orkhan Mammadov, Chairman of the Board of the Agency for the Development of SMEs, noted that supporting the activities of SMEs and expanding their access to financial resources is a priority for the Agency. In this regard, projects and activities that will be jointly implemented with FIMSA and ABA are important for expanding access of SMEs to financial resources, holding joint discussions in this area, and improving financial literacy.
Ibrahim Alishov, Acting Chairman of the Executive Board of FIMSA, noted that the presidential decree on additional measures in connection with solving the issue of the individuals’ problem loans will provide banks with liquidity at the expense of cheap funds, which, in turn, will help SMEs to get access to cheap financial resources and revitalize the economy.
Stressing the importance of the signing of the protocol of intent, ABA President Zakir Nuriyev remarked that a new platform will be created that will improve existing mechanisms that provide financial support for SMEs from both the government and credit organizations.