Azerbaijan to establish guarantee insurance fund of agricultural credits
Azerbaijan, Baku, Feb. 25 / Trend U. Ismayilova /
The Azerbaijani Microfinance Association determined the following measures within the "Mechanism of insuring agricultural loans" project, the head of the project research group Vagif Rustamov said during the presentation of final results of studies conducted within the project.
One of the main proposals within the project is to create a guarantee fund to regulate these processes, Rustamov said.
He said that according to the research, as well as opinion received from the Ministry of Economic Development, the Ministry of Finance and Agriculture, the Central Bank of Azerbaijan and the state commercial insurance company, the following decision was made:
- To conduct advocacy campaigns to receive proposals for improving the regulatory base;
- To develop a draft of the fund;
- About a concrete mechanism of the fund's activity;
- About concrete mechanisms of concerned people's cooperation;
- To conduct other work on establishing and organizing the guarantee fund's activity.
Earlier, Rustamov said that the investigation revealed that Azerbaijani insurers are not interested in insuring agriculture, and local banks - in giving credits to small farmers because of the high level of risk in this area.