Concessional financing of business in Azerbaijan can be used in issuing targeted social assistance

Business Materials 26 January 2012 21:12 (UTC +04:00)

Azerbaijan, Baku, Jan.26 /Trend E.Ismayilov/

Mechanism of the National Entrepreneurship Support Fund under the Ministry of Economic Development can be used in the frame of application of alternative mechanisms for granting of targeted social assistance (TSA) of Self-help project, the Deputy Minister of Labour and Social Protection Ilgar Rahimov said on Thursday.

The aim of self-help project is the direction of the funds to the development of business by the families receiving TSA. The implementation of the project started in Balakan and Jalilabad regions in 2011. The project began to be used in Nizami district of Baku, in Masalli, Guba and Ismailli regions in 2012.

"NFES has a great experience in business financing, so we use some elements during the implementation of self-help project and intend to continue to coordinate with the National Fund," the official said.

According to Rahimov, it is planned to complete a pilot project in the first half of 2012 in order to take more global solutions on the second half 2012.

"We plan to report to the Government on the work done in the second half of the year" Rahimov said. "Results should be positive because the population is very active in one-time receipt of the full amount of TSA."

Some 541 989 people from 120 478 families, each of which is paid 106.45 manat per month, received TSA at the end of 2011.

Azerbaijan moved to the system of TSA since 2006. Its size is defined as the difference between "needs criteria", which is 84 manat from 2012[in 2011 was at AZN 75], and the amount of income per family member.

Official exchange rate on Jan.26 is 0.7863 AZN/USD