International Financial Corporation Allocates $10mln for Azerbaijani Non-Bank Organization

Business Materials 13 September 2008 11:24 (UTC +04:00)

Azerbaijan, Baku, 13 September / Trend corr.U.Ismayilova /International Financial Corporation (IFC) signed an agreement with Azerbaijani non-bank Credargo organization. Under the agreement IFC will allocate $10mln to the organization.

Credargo allocated funds to finance agricultural crediting in Azerbaijan. Some$6mln out of the total sum has been allocated for three years and $4mln for eight years term.

"Thanks to the cooperation with IFC Credargo will cover new regions and rural in the country. The consultations with IFC will allow us to reinforce Credargo's institutional capabilities," Eldar Jafarov, General Director of the company, said.

Furthermore, the cooperation with IFC will promote Credargo to extend micro financing in rural areas in Azerbaijan, and consultation services will assist to reinforce institutional capabilities," Jafarov said.

As for 1 September, Credargo's portfolio is $49mln and 13,000 active customers. Company's interesting rates fluctuated from 24% to 26%. About 60% of Credargo's portfolio is envisaged to extend business, 7% - agricultural credits and 26% - consumer credits. Company is to extend portfolio to AZN 60mln by the end the year. The authorized capital of Credargo is AZN 7mln.

IFC is one of the World Bank group organizations which invest into private sector.

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