Azerbaijan, Baku / corr Trend I.Khalilova / The State Agency for Agriculture Loans of the Azerbaijani Agriculture Ministry is carrying out monitoring into the efficiency of credit union activities, created within the first phase of the adapted program on development and crediting of Azerbaijani agriculture, Razim Valiyev, the Director of the State Agency said on 27 November.
Nearly 30 credit unions were established within the project, but the majority of them cannot meet their aims, Valiyev said. "They have a weak approach to forming institutes for crediting projects in rural areas," the Director said.
As a result of research some of them will be excluded from the Azerbaijani Association of Credit Unions, and financing for them will be stopped. Problems were found in two or three credit unions, whilst monitoring into others is still underway.
"The credit unions are divided into categories, and we wanted to work with them not on the principle of crediting with future repayment, but leave these funds for their further refinancing. However, due to risks, the principles of long-term use of credit resources is applied only to units referred to as 'A' category," Valiyev said.
According to Valiyev, unions successfully passing the monitoring will be financed within the second phase of the adapted program of development and crediting of agriculture, which was realized on 1 January 2007.
Presently, the Association unites 52 credit unions.