German-Azerbaijani Fund increases agricultural crediting in Azerbaijan
Azerbaijan, Baku, November 19 / Trend , N.Ismaylova /
Since the beginning of 2009, German-Azerbaijani Fund (GAF) has increased funding for agricultural projects in Azerbaijan by 15-20 percent, said the technical manager of GAF, Andreas Frank.
Today, 55.6 percent of the total number of loans and 40 percent of the total portfolio account for regions of the country, which is mainly linked with the increased activities of the regional branches, said Frank.
At present, the structure of loan portfolio of GAF was allocated as following: 67 percent for trade, 4 percent for services, about 11 percent for production and 18 percent for agriculture.
"The most active growth in lending is observed in the Sheki-Zagatala region," said Frank.
Today the Fund's activities cover 14 regions.
Financing by the Fund started in 2001 at the expense of a loan from KfW. The German bank provided two tranches of €8.7 million to GAF. Spending them and the loan of EBRD completed, and therefore, currently the local banks are financed from the revolving account. The European bank joined the financing through GAF within the mechanism of social framework financial services for micro and small enterprises in Azerbaijan (AMBF-MSE) in 2006.
The current portfolio of placement from the GAF varies from €11.5 million euros.
Agreement on the establishment of GAF was signed in 1999, but the credit began to be provided in March 2001 at the expense of German development bank KfW. GAF partners are of Bank of Baku and Unibank (since March 2001), January 2003 - Parabank and Bank Respublika, September 2004 - Azerdemiryolbank and AGbank, December 2006 - Rabita Bank and Mugan Bank, February 2007 - Nikoil Bank.
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