BAKU, Azerbaijan, April 5. The Resolution of Azerbaijan’s Cabinet of Ministers of April 4, 2022 is the next step in the framework of anti-inflationary measures, press service of the Cabinet of Ministers told Trend.
This Resolution provides for the creation of mechanisms for preferential financing instruments and products of micro, small and medium-sized businesses involved in the collection and processing, agricultural processing of basic food products as part of the minimum consumer basket.
The proposed mechanisms are:
1. Concessional loan facilities
Preferential financing by the Entrepreneurship Development Fund of Azerbaijan during 2022 to collect additional raw materials for micro, small and medium-sized entrepreneurs involved in the collection and processing, agricultural processing of basic food products as part of the minimum consumer basket;
2. Subsidizing loan interest
The use of a mechanism for subsidizing credit interest on loans provided in 2022 to business entities operating in these areas in order to reduce financial costs and reduce the cost of basic food products as part of the minimal consumer basket.
Mechanism conditions:
- subsidy period: up to 1 year;
- period of the loan: regardless of the period;
- loan amount: up to 3 million manat ($1.7 million);
- interest rate of the loan: regardless of the interest rate;
- interest subsidy: up to 10 percent of credit interest point.
Interest subsidies of a maximum of 15 million manat ($8.8 million) will be paid on a loan portfolio of 150 million manat ($88.2 million) within the framework of the provided conditions.