Azerbaijan government determines plans for ending budget financing for National Fund for Entrepreneurship Development
Azerbaijan, Baku, November 13 / Trend I. Khalilova /
The National Fund for Entrepreneurship Development (NFED) at the Ministry of Economic Development of Azerbaijan has already collected about 440 million manat, thus reducing the budget financing [more than 40 percent] for the Fund next year will not cause the deficit in resources, the Finance Minister Samir Sharif said during discussions over draft 2010 Public budget.
"At present, in Azerbaijan there is no such financial institution, in which such a huge amount of finance was concentrated," said the minister. At the same time, the Presidential Decree on approval of 2009 Public budget contains the requirement of Fund's transition to self-financing and efforts are made in this regard.
"We hope that after accumulation of about half a billion manat at the Fund, the Fund can transfer to self-financing and carry out activities without receiving financial support from the Public budget," said Sharifov.
The 2010 Public budget provides 44 million manat for NFED compared to 74 million manat in 2009. The Chairman of the Accounting Chamber Heydar Asadov said during discussions over the 2010 Public budget that taking into account the repaid funds from the formerly issued credits, the Fund's budget next year will increase by 20-25 million manat.
"National Fund's revenues are expected to total 55 million manat, which will be directed towards financing projects of business entities in 2010, said Asadov. - Accordingly, the Fund's portfolio will be 99 million manat, which exceeds the funds allocated from the Public budget in 2009.
The interest incomes of the NFED will remain almost at the level of this year. Whereas in 2008 only 34 million of 56 million manat was ensured at the expense of interest incomes and 11.8 million manat accounted for unused funds in 2008 and 11 million manat from early repayment of funds due to mismanagement.
In 2009, the National Fund will issue preferential credits in amount of 130 million manat, of which 74 million manat falls on budget, while 56 million manat formed due to formerly issued credit.
Current rate on Nov. 13 is 0.803 AZN/USD.
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