Azerbaijan strengthens control over use of preferential loans by entrepreneurs

Azerbaijan, Baku, October 24 / Trend N. Ismayilova /

Control over use of loans granted on concessional terms will be strengthened upon new rules of using the National Fund for Entrepreneurship Support's funds under the Azerbaijani Ministry of Economic Development.

According to new rules of the National Fund, more attention will be paid to more effective monitoring over current activity, objective evaluation of projects based on minimal requirements and certain criteria, as well as financing of investment projects, according to the priority spheres of economy and economic regions of the country.

Getting of preferential loans was simplified in the rules of the fund's use of means. Maximal interest rate on granted loans was reduced from seven to six percent per annum. The period was reduced to 25 days. Maximum sum of loan was increased from three to five million manat.

It can be financed by state budget, as well as other sources to support the fund.

The fund's means are formed from budgetary funds, incomings resulting from its activity, including the payment of interest and principal debt on previously given preferential loans, fines and fee, monetary assistance given on a voluntary basis by local and foreign physical and legal entities, assistance and grants from foreign countries and international organizations, loans, drawn by the State on the foreign financial markets.

The National Fund must to inform about the status of funds once per quarter.

The Supervisory Council is a supreme governing body of the fund. It must operate at least once per quarter. The Supervisory Council must determine the rules for monitoring.

Reorganization and liquidation of the National Fund are implemented by the President of the country. In case of liquidation, its property is transferred to the state.

Preferential loans worth 130 million manat are planned to be given through the fund in 2009, 74 million manat falls on budget funds, but 56 million manat are formed by the previously given loans.

On October 24, the official exchange rate is 0.8031 manat.

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