Contract Signed with German Bank on Management of Credit Guarantee Fund in Azerbaijan
Azerbaijan, Baku, 27 August /corr. Trend I.Khalilova / The German Development Bank KFW concluded a contract with the Ministry of Economic Development of Azerbaijan on beginning of the work of the consultant of Savings Bank Foundation for International Corporation (SBFIC) as the manager of Credit Guarantee Fund (CGF), the head of the KFW Baku office, Natik Abdullayev.
"The bank and the Ministry exchanged documents and the consultant already can begin activity," Abdullayev said. SBFIC representatives already arrived in Baku yesterday.
The list of banks, whose credits will be guaranteed through KGF was also coordinated with the Ministry. During the first stage, KfW proposed to, as bank-agents, draw the partners of German- Azerbaijan Fund, including Bank of Baku, Bank Respublika, UniBank, Para Bank, Azerdemiryolbank and Azerigazbank.
KfW granted €4mln to Azerbaijan for establishment of Credit Guarantee Fund, from which €3.75mln will be as guarantees for the establishment of the Fund and €0.25mln for the payment of the services of consultant.
Azerbaijan banks can borrow from the international banks on the conditions of the crediting of KfW that possesses rating AAA+. In the initial stage the amount of the Fund will be €2.3mln. Credit Guarantee Fund does not have a limit of attraction of credit lines, but the amount of guarantee will not exceed €500,000 during the first stage. During the attraction of the guarantees of KfW, the banks can not give one borrower credit totaling more than €150,000.
Exchange rate on 27 August is 0.8137 AZN/USD.
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