IFC Specifies Credit to Azerbaijan’s Non-banking Organization
Azerbaijan, Baku, 17 June / Trend corr I. Khalilova/ The non-banking credit organization CredAgro has completed talks with the International Finance Corporation (IFC) to get a $4mln-credit for development of small and medium business," CredAgro reported on 17 June. The agreement is expected to be signed by the end of June.
The credit is intended for financing small and middle entrepreneurship.
The total volume of the loans granted to CredAgro so far makes up $30mln. CredAgro, as a non-banking organization, works with a restricted license, therefore it carries out financing out of the proceeds of the secured loans. CredAgro cooperates with 15 international financial organizations, foreign investment funds and other investor including EBRD, the Swiss micro-finance fund Dexia/Blue Orchard and others.
The current credit portfolio of CredAgro makes up AZN44mln and it is expected to reach AZN50mln by the end of 2008.
The only founder of CredAgro is an international humanitarian organization ACDI-VOCA, which established the credit organization in Azerbaijan 8 years ago. The authorized capital stock of the organization is $5,000 and aggregate capital is AZN 7mln.
At present, the activities of CredAgro focus on financing projects in the regions and it covers 27 regions. The Bank has established 9 representations and several back offices. The Bank finances various spheres including trade operations, infrastructure, leasing and consumer crediting. CredAgro grants credits with up to 36% interest rate annually for up to 3 year term. The maximum credit limit is AZN 50,000, through sometimes it exceeds the norm.
On 17 June, official exchange rate totalled 0.8176 AZN/USD.
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