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100 more preferential loans provided to entrepreneurs in Azerbaijan

Business Materials 29 August 2009 12:16 (UTC +04:00)

Azerbaijan, Baku, August 29 / Trend , I.Khalilova /

Within the state support for entrepreneurship development in Azerbaijan, the Ministry of Economic Development continued crediting investment projects on a preferential basis, enlightening entrepreneurs.

The executive director of the National Fund for Entrepreneurship Development (NFED) under the Ministry Shirzad Abdullayev said during the event in Saatli district that for a more efficient allocation of funds, NFED introduces new approaches. The Fund has already started to finance construction of cold storage facilities in the regions of the country. NFED already provided preferential loans to five business entities in Aran and Guba-Khachmaz economic regions (two per each) and one in Ganja-Gazakh region.

In addition, a call was announced for the proposals for investment projects on construction of grain storage facilities with a capacity of 10 tons per each in the Aran, Daglig Shirvan, Ganja-Gazakh, Lankaran, Shaki-Zagatala economic areas and in Upper Karabakh. NFED head invited entrepreneurs to actively participate in the tender, the results of which will be announced on September 17.

During the event, through eight authorized credit organizations, preferential loans were provided to more than 100 entrepreneurs operating in the industry and the agricultural sector in regions of Saatli, Sabirabad, Imishli, Beylagan, Ujar, Barda, Zardab, Hajigabul, Bilasuvaer, Neftchala and Yevlakh. As a result, their projects will open over 100 new jobs.

Thus, in 2009 the NFED provided 63.5 million manat loans to over 1,200 business entities, which will create more than 4,800 new jobs.

In 2009 the Fund plans to issue preferential loans at 130 million manat, of which 74 million manat falls on budget, and 56 million manat formed by previously issued credit. Yearly the Public budget provides 80 million manats to the NFED.

The credit resources are distributed via 29 authorized credit organizations, one non-banking credit organization and four credit unions.

More than 78 percent of projects falls on regions, and 86 percent of the projects of production direction covers processing sphere.

According to the regulations on use of NFED finance, which were confirmed on 28 December 2006, the period of micro and small credits was determined at two years, medium credits - up to three years, large credits - five or seven years. The maximal amount of the credits for one entrepreneur totals AZN 3mln.

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