Azerbaijan, Baku, 26 August / Trend corr. I.Khalilova / The Azerbaijani Government plans to increase loaning agrarian field through budgetary means in 2009 and it is planned to allocate AZN 7.5mln beforehand for these purposes, Razim Valiyev, the general director of the State agency on agricultural loaning at the Agriculture Ministry, said on 26 August. Earlier, budgetary appropriations were planned to be increased to AZN 30mln in 2009.
So far, AZN 5mln has been paid a year to finance farmers through the budgetary means, which has been allocated since 2007. Means, which were envisaged for 2008, were allocated in the first quarter. Their distribution through banks and non-bank loan organization has finished, Valiyev said. They were directed to finance 200 projects in plant growing and agricultural production field.
Bank-agents, including Texnikabank, Turanbank, Rabitabank, MuganBank, ZaminBank, Bank of Azerbaijan, Gencebank, Azerbaycan Senaye Banki and non-bank IKA - Icrachi Kredit Agentliyi, have issued lax loans since 2007.
Micro loans are issued in the amount of up to AZN 1,000 with two-year term, small loans - AZN 1,000-20,000, medium loans - AZN 20,000 - 50,000 with three-year term and huge loans- AZN 50,000-200,000 with five-year term through the budgetary means. Loan rates were determined at 7% level, like those of the National Fund on entrepreneurship support.
In accordance with the decree of the Azerbaijani Cabinet of Ministers, loans may be directed to manufacture and to refinery of agricultural products, improvement of melioration of irrigating lands, supply of irrigation equipment, purchase farming machines and chemical substances, upgrade of food production field, as well as to realize pilot projects of the Agriculture Ministry and artificial insemination in animal husbandry.
At present main attention is paid to developing animal husbandry, because this field is considered as the most profitable and quickly reimbursed. Farmers can repay loans within one or two years, while winegrowing yields fruits only after four or five years.
The government is interested in development of all fields of agriculture. Therefore, loans cover to five-year term.
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