Increase in Credit Demand for Agriculture in Azerbaijan in 2008
Azerbaijan, Baku / Trend corr. I.Khalilova / The Azerbaijani Agricultural Ministry is prepared to submit a proposal to the government to re-consider the issuing of credits to the finance agrarian sector at the expense of the budget allocated from 2007, the director of the Agency on Agricultural Credits Razim Valiyev stated. Changes may be implemented after one or two years.
"Initially we want to know the needs of the farmers. Furthermore, farmers themselves should be interested in changes and make proposals," Valiyev said.
There is a need to increase maximum credits of one project which totals AZN 200,000. Credit rates at 7% per year is considered normal, stated Valiyev.
However, there is a problem with cash flow and crediting which European countries are studying. In some cases joint state ensuring is used. In such a case part of the deposit is paid by the government.
The State budget allocated AZN 5mln for agriculture in 2007. A similar sum will be allocated to the agricultural field in 2008.
There is a need of $30mln credits for agriculture in 2007. The sum is expected to amount to $40mln in 2008.