Azerbaijan, Baku, Feb.3 / Trend corr I. Khalilova / German development bank KfW signed a loan agreement with Azerbaijani bank "Bank Respublika" within the project of agro-financing of Azerbaijani rural areas totally in the amount of roughly six million euro, head of the Baku branch of the KfW Natig Abdullayev said on Feb.3.
These loan resources will be distributed amongst three loaning agencies: Bank Respublika, AG Bank and non-bank loaning agency CredAgro. The agriculture will be financed through these agencies. Each agency will receive roughly two million euro. AG Bank doesn't have access to the loan of the German bank as bilateral loan agreement lacks.
The first agreement was signed with CredAgro. The agreement with the banks is delayed as the German bank plans to render technical assistance to these banks, Abdullayev said.
Abdullayev said that the final agreement will be inked with AG Bank in a couple of days.
The German bank intends to render funds as subordinate loans. Although these kind loans are rendered to second-level capital, these ones will be directed to financing rural population in the regions.
Rural areas of Sheki-Zagatala and Gazakh regions will be included to the first stage.
The loan terms will be similar with the terms of financing banks through the German-Azerbaijani fund.
CredAgro was founded in 2000 by international humanitarian organization ACDI-VOCA. The authorized capital of the organization makes up $5,000 and joint capital nearly $7 million.
CredAgro is oriented to financing regional projects and covers 27 regions. It has nine branches and subsidiary offices. The loaning sphere of the agency is various: from agricultural, commercial, infrastructure and leasing to consumer credit.
Official currency rate of USD is AZN 0.8071 on Feb.3.
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