Azerbaijan, Baku / Trend corr. I.Khalilova / The German Development Bank KFW plans to launch the Credit Guarantee Fund of Azerbaijan at the beginning of December, the Head of KFW Baku Office, Natig Abdullayev, on 15 November. It will be announced during the upcoming visit of the KfW Manager on Financial Projects, Mikhail Yaintsika, to Baku.
According to Abdullayev, German Savings Bank Foundation for International Cooperation (SBFIC) may be involved as consultant for the Credit Guarantee Fund of Azerbaijan. SBFIC has working experience in regards to this in Georgia and Armenia.
However, the Bank is still delaying in putting forward its candidature for the Credit Guarantee Fund of Azerbaijan. In addition, KfW offers to attract as agent banks the GAF partner banks Bank of Baku, Bank Respublika, UniBank, Para Bank, Azerdemiryolbank and Azerigazbank.
KFW has approved €4 mln for the realization of the project, with €3.75mln as guarantee for the establishment of the Fund and €0.25mln for payment of consultation services. The Fund will function as accountant in KFW's headquarters. In the event of appeals from Azerbaijani banks, the Fund will inspect them and appeal to KFW for a guarantee, Abdullayev said.
Azerbaijani banks may borrow from international banks on the basis of credit terms of KFW who possess AAA+ rating. In the first stage, the amount of the Fund will total €2.3 mln. The Credit Guarantee Fund has no limitations in attracting credit lines, but in the first stage, the amount of the guarantee will not exceed €500,000. Whilst attracting KFW guarantees, the banks cannot give loans exceeding €150,000.