Azerbaijan, Baku, 6 February / Trend corr. I.Khalilova / According to the Azerbaijani Economic Development Ministry, by 2013,the turnover of the National Fund for Entrepreneurship Support (NFES) will be able to self support itself without any state budget support, Heydar Babayev, the Economic Development Minister, stated on 6 February. According to Babayev, NFES may allocate the credits at the expense of early allocated funds.
"We have analyzed the credit allocation term and also the beginning of their return, and came to the conclusion that the sum necessary to cover the demands of entrepreneurs in credit resources will be accumulated till 2013," the Minister said. In the case of stopping the budget financing from 2009, which may cause deficit in the resources as the current repayment is low and expected as AZN 30mln only.
Furthermore, the Ministry is expected to submit a proposal to the Government to make changes in the form of National Fund property, specially, turnover of the Funds of the shareholder and also to gain independence.
"These proposals should be developed for only three months, in compliance with the presidential decree," Babayev stated.
Total volume of allocated credits through National Fund made up AZN 90.7mln, and AZN 74mln out of the sum was allocated at the expense of budget funds. There are plans to allocate some AZN 80mln for the state budget, like the same in 2007.
According to the Minister, the National Fund allocated has privileged credits in the sum of AZN 235,6mln to 6,194 entrepreneurs. Nearly, 60,000 new jobs will be opened as a result of implementation of the projects.
Under the regulations on application of the funds of National Fund, ratified on 28 December 2006, the term of allocation of micro-credits and small-credits was set for two years, average - three, and big - seven. Under the decision of National Fund Supervision Council, there may be exclusion on the increase of credit allocation. The maximum volume of credit per an entrepreneur is AZN 3mln. The interest rate should not exceed 7%.
The credit resources are distributed through 32 plenipotentiary credit organizations, elected on the competitive conditions.