Azerbaijan, Baku, June 24 / Trend I. Khalilova /
The Azerbaijani ministry of economic development negotiates with the World Bank on drawing loan in the amount of $100 million to finance small and medium enterprises via the national fund for entrepreneurship support, the fund's executive director Shirzad Abdullayev said.
OFID fund is ready to actively finance the national fund as WB and the European Bank for Reconstruction and Development. But corresponding measures are taken to direct their loan resources to finance entrepreneurs," Abdullayev said.
Presently, financial accounting of the fund is appreciated in 2008 by the international auditor Baker Tilly Audit Azerbaijan. After getting audit report, national fund for entrepreneurship support will have more potentialities to draw foreign borrowings, he aid.
New interpretation of use of the national fund for entrepreneurship support's funds envisages entitling of the fund with drawing of loan resources from foreign financial sources.
We suggest terms of drawn foreign borrowings allocation," Abdullayev said.
Banking mark and 1 percent of the national fund for entrepreneurship support can be added to loan rate while financing of entrepreneurs in case of drawing loan resources from WB or other financial institutes on annual rate of 2-3 percent.
"In any case, it is rather cheap financial resources for development of entrepreneurship, Abdullayev said. Presently, commercial banks fail to grant sufficient financial support to entrepreneurship due to high rates and short-term loans. But our terms allow rendering them aid."
Loans can be given under maximal term for 7 years through the national fund. New interpretation of rules does not envisage increase of this term. But reduction of rate to 6 percent and increase of maximal sum of loan from 3 to 5 million manat were suggested. Authorized banks of the fund get sufficient profit under loaning of entrepreneurs owing to the national fund for entrepreneurship support's funds. Problems concerning return of loans must be liquidated by banks, Abdullayev said.
Roughly 30 banks, 4 credit unions and a non-bank loan organization (Agrar-credit) are authorized loan organizations.
"Terms of preferential loans granted through the national fund, especially, loan rates and term are higher 3-4times than on bank loans, Abdulayev said. So, there will not be any problems with paying off loans under normal work of entrepreneur."
From other side, returned funds on earlier granted loans are not received in the state budget but accumulate on turret account of the national fund for entrepreneurship support. These funds are used in loaning of subjects of entrepreneurship. So, untimely paying off funds will lead to delay of new loans grating, head of the fund said.
Preferential loans in the amount of 130 million is planned to grant through the fund in 2009. Roughly 74 million manat falls on budget funds but 56 million manat were accumulated owing to earlier granted loan resources.
On June 24, the official exchange rate is 0.804 manat to $1.
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