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Capitalization of Agrarian-Credit from Azerbaijani State Budget to be Continued in 2008

Business Materials 17 October 2007 15:49 (UTC +04:00)

Azerbaijan, Baku / Trend corr. I.Khalilova / The Azerbaijani government is planning to increase the capital in the non-bank credit organization of Agrarian-credit by AZN 1.3mln.

At present, the capital of the credit organization amounts to AZN 18mln after allocation of AZN 6.3mln from the state budget in 2007.

The Azerbaijani government will capitalize the credit organization, including the other state banks, International Bank of Azerbaijan and Kapital Bank, until privatization.

Agrarian-credit has already appealed to the National Bank of Azerbaijan to become a credit organizational bank at the Finance Ministry. Presently, the credit organization is operating on limited licenses.

In compliance with a decree issued by the Azerbaijani President on the State budget for 2007 the Finance Ministry together with the NBA has to develop proposals on the improvement of the current mechanism on financing and crediting of agrarian sector within two months. Earlier, the NBA's head, Elman Rustamov, said the agrarian bank should be a state one. With this purpose the NBA is studying analytical models in other countries.

The Azerbaijani Finance Ministry is the main shareholder of the Agrarian-credit, which has 99.9% of the credit organization. The rest of the shares of the organization are equally divided among the state insurance organization of Azersigorta and Land-reclamation and water agriculture company.

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