Azerbaijani credit organization decreases tariffs on agricultural lending
Azerbaijan, Baku, Feb.2 / Trend I.Khalilova /
Agrarcredit non-banking credit organization reconsidered interest rates policy decreased by 3 percent to 21- 24 percent, the organization reported
At present, commercial loans rates hit 24 percent per annum and 21 percent - for the manufacturing industry. Earlier rates hit 27 and 24 percent, respectively
In 2010, Agrarcredit is forecasting loan portfolio to reach 10 million manat and half of these funds will be provided through the re-paid funds on the formerly provided loans. Some 30 percent of new lending should be paid on the expiration of six months
Agracredit is excepting to receive 1.2 million manat compared to 1.89 million manat through the National Entrepreneurship Support Fund under the Economy Ministry in 2009
Agracredit expects funds' attracting for financing the projects through the participation in the International Agricultural Development Fund (IFAD) on Agricultural Development in the West direction.
Credit institution submitted documents for participation in the tender (credit component hit $4 million with the total project cost about $ 30 million). The project Agrarcredit expects to attract at least $1,000,000 for lending of farmers in the Gazakh district.
At present Agracredit attend the IFAD's other project on Development of the north-eastern regions of Azerbaijan where from the total project cost worth $25.148 million $4.8 million is planning for lending
Agrarcredit is also expects to attract credit resources from agricultural credit agency of the Agriculture Ministry, which the state budget will allocate 10 million manat in 2010.
In 2009, Agracredit's loan portfolio hit roughly 16 million manat compared to 17 million in 2008
The organization's assets hit about 25 million manat
Agrarcredit believes that its indicators increased slowly, due to the limited facilities in attracting funds. The organization is continuing to operate on the basis of the limited license and the government has already received proposals to transfer it into a bank
At present Agrarcredit's capital hit 18.5 million manat. The organization's shareholders will decide its further capitalization
The Azerbaijani Finance Ministry is the main shareholder and owned by 99.9 percent of shares and the rest - distributed between Azersigorta state insurance company and Irrigation and OJSC Water Management