Azerbaijan to increase funding for concessional lending in 2013

Business Materials 15 October 2012 20:48 (UTC +04:00)

Azerbaijan, Baku, October 15 /Trend A.Akhundov/

The State Budget project for 2013 provides an increase of funds directed to the National Fund for Entrepreneurship Support (NFES) under the Ministry of Economic Development by 66.5 percent next year, Ministry of finance said on Monday.

Some 150 million manat will be allocated from the state budget to NFES in 2013, which is 59.9 million manat, or 66.5 percent more compared to the estimated figures in 2012 and by 116 million manat or 4.4 times more compared to 2011.

These funds will be used for the development of small and medium businesses, the expansion of its financial support through soft loans, development of production and processing sector based on modern technology, financing of infrastructure projects that stimulate the production of competitive products for export.

The amount of means accumulated in the fund will reach 1.102 billion manat (including 612.9 million manat at the expense of the state budget, 489.4 million manat - due to return loans).

The fund plans to issue loans worth 200 million manat, 110 million manat of which will be provided due to repayment of loans.

NFES issued soft loans worth 181.8 million manat to finance more than 2,050 investment projects. These projects will contribute to the creation of over 7,500 new jobs.

NFES was established in 1992. Issuance of loans to entrepreneurs is made through authorized banks and non-bank credit organizations, whose total number is 43.

Official exchange rate on Oct 15 is 0.785 AZN/USD