KfW Determines Banking and Non-Banking Credit Organizations for Agricultural Financing Project in Azerbaijan
Azerbaijan, Baku /corr. Trend I.Khalilova / German Development Bank KfW determined banking and non-banking credit organizations which will be involved in realization of €5mln project on agricultural financing in rural areas of Azerbaijan, the Head of KfW Baku Office, Natig Abdullayev, said on 15 November. The selected banks will be highlighted at the beginning of December.
It is not excluded that the credit agreements with them will be signed during the visit of the KfW manager on financing credits, Mikhail Yanitska, to Baku, Abdullayev said.
"His visit has been fixed for the beginning of December. He will bring agreements because KfW is preparing to give agricultural agreements via banking system," Abdullayev said.
According to the 2006 searches of the consultants, Azerbaijan's districts of Sheki, Lenkoran and rural areas in Ganja were selected. In addition, searches were held in Sheki-Zakatala and Gazakh district's rural areas because in the first stage the project will cover these districts.
"We have already studied and approved the project. I think that first credits will be granted by the summer of the next year," KfW Vice President for Europe and Caucasus, Ronald Siller, said earlier.
According to him, separate financial institutions receiving subordinated loans from KfW will be selected for financing.
"We will begin from small amounts and even want to work with the institutions from the non-banking sector, i.e. NGOs which have experience in this sphere," Siller said.
According to him, currently not all commercial banks in Azerbaijan are prepared to work in rural areas. Only one bank expressed its wish.