Azerbaijani state non bank organisation to involve new foreign loans

Business Materials 11 October 2012 19:33 (UTC +04:00)

Azerbaijan, Baku, Oct 11 /Trend A.Akhundov/

'AqrarKredit'Azerbaijani state non bank credit organization has reached a preliminary agreement with Black Sea Bank of Trade and Development (BSTDB) on involvement of a loan in the amount of $4 million. This was reported to Trend by company's administration member Suleyman Kalashev.

"We have preliminary agreement on involvement of $4 million till January 2013. The funds will be directed to financing of different agricultural branches, particularly, to processing branches," Kalashev noted.

In addition, in his words, the company is going to take part in the project on complex development of agricultural districts, financed by Islamic Bank of Development (IDB) and International Fund of Agricultural Development (IFAD).

"We are already participating in two IFAD projects on support of agricultural sector development in north eastern and north western regions of the country. We are going to involve funds in the amount of 4 million manat within the third project. We have to present documents for participation in the project, which covers 4 regions - Zagatala, Sheki, Agdash and Yevlakh, early in October," Kalashev said.

In his words, considering this funds and planned increase of concessional lending through the National Fund for Entrepreneurship Support under the Ministry of Economic Development, 'Aqrarkredit' is planning to give loans in the amount, exceeding 20 million manat.

"The forecast on credit portfolio volume for 2012 amounts to 15 million manat, 10 million of which are planned to be issued from its own funds, 2 million manats - through the National Fund for Entrepreneurship Support, 3 million - within the second IFAD project. Around 9 million manat have been issued till now in all 3 directions. I believe that the rest will be issued till the end of the year," Kalashev noted.

Azerbaijani Ministry of Finance is 'Aqrarkredit's general shareholder with 99.9 percent of the shares, the rest of the shares are distributed equally between 'AzerSigorta' state insurance organisation and 'Melioration and water management' company.

Official exchange rate for October 11 is 0,7851 AZN/USD.