Azerbaijan discloses another mechanism of preferential financing for SMEs
BAKU, Azerbaijan, Dec. 8
By Eldar Janashvili – Trend:
The Azerbaijani Agency for the Development of Small and Medium-Sized Enterprises SMEs will cooperate with Rabitabank to expand the opportunities for financing the small and medium-sized enterprises operating in the agricultural sector, Trend reports referring to the agency.
The cooperation will be carried out within a joint project with the World Bank and the Azerbaijani Agency for Agricultural Credit and Development under the Azerbaijani Ministry of Agriculture to strengthen agricultural competitiveness.
Rabitabank acts as an agent bank of the project.
The main objective of the project is to render financial support in the processing, sale and production of agricultural goods. A loan worth $3 million was initially allocated for the projects to be implemented in this sphere.
The loan term within the project is seven years, while the interest rate is 8.8 percent.
As part of the project, DOST centers in different cities and districts of the country will regularly inform micro, small and medium-sized entrepreneurs about the project, provide them with information and consulting services, connect entrepreneurs applying to the agency for financial support to create and expand their agricultural business with an agent bank.
Moreover, entrepreneurs who applied to the bank for getting a loan within this project will receive a discount on business loans in the amount of one percent.