Azerbaijan Highlights Readiness to Re-establish Talks with KFW regarding Credit Supporting Entrepreneurship

Business Materials 20 October 2007 11:44 (UTC +04:00)

Azerbaijan, Baku /corr. Trend I.Khalilova / Azerbaijan is prepared to re-establish the talks with the German Reconstruction Bank KFW with regards to the credit supporting small and medium entrepreneurship if the bank agrees to allocate finances via National Fund for Entrepreneurship Development NFED, said the Minister of Economic Development of Azerbaijan, Heydar Babayev at the meeting headed by Germany's Minister of Economics and Technology, Michael Glos.

According to him, financing entrepreneurship via NFED is carried out by the local banks empowered by the National Bank of Azerbaijan and the selected projects are examined by a special commission.

"If KFW agrees, the bank's representative also may join the commission examining projects," the Minister said.

Attending the meeting, the KFW First Vice President for Europe and Caucasus, Ronald Siller, highlighted readiness to consider this issue, considering the productive co-operation with Azerbaijan on other projects.

KfW allocated two credits for German-Azerbaijani Fund (GAF) totaling €8.7mln at an annual rate of 0.75% with a 35-year term including a 10-year grace period. Currently the funds have been fully used and the banks are financed via the revolver account. The partners of the GAF are Bank of Baku and UniBank (since March 2001), Parabank and Bank Respublika (January 2003), Azerdemiryolbank and Azerigazbank (September 2004), Rabitabank and Muganbank (December 2006).