BAKU, Azerbaijan, December 29. Azerbaijani commercial banks provide a state guarantee of return of part of the loan amount up to 60 percent to entrepreneurs affected by the coronavirus pandemic (2020-2021), Azerbaijan's Ministry of Finance said, Trend reports.
"According to a Cabinet of Ministers resolution dated July 9, 2020, Azerbaijani commercial banks provide state guarantees of up to 60% loan repayment to entrepreneurs as part of measures to provide financial support to business entities affected by the coronavirus pandemic (2020-2021)," the Ministry said.
Due to state support, 2,628 entrepreneurs were allocated loans totaling 499.5 million manat (293.8 million), of which 291.6 million manat ($171.5 million) were secured by the state guarantee. In accordance with the agreements concluded by the Ministry of Finance with the Entrepreneurship Development Fund, as well as the fund with the mentioned banks and entrepreneurs, the ministry has identified a guarantor for providing state guarantees for these loans.
Since the main debt obligation has not been timely fulfilled since the allocation of state guaranteed loans, the Ministry of Finance, as a guarantor in total to seven banks at the expense of the "Fund for Securing Obligations on State Debt and Guarantees," paid 658,200 manat ($387,176) in 2022 instead of 14 entrepreneurs, and during the 12 months of 2023, 1.5 million manat, or $882,352 (instead of 27 entrepreneurs). Thus, during the two years of the program, the state repaid the overdue credit debt obligations of 41 entrepreneurs in the amount of 2.1 million manat ($1.2 million).
"In accordance with the terms of state guarantees, the Entrepreneurship Development Fund has the right to recover from these business entities the credit debt paid to banks instead of business entities on the basis of state guarantees," the Ministry added.