Baku, Azerbaijan, June 9
By Azad Hasanli - Trend:
Azerbaijan will increase crediting quality in the agricultural sphere in accordance with international experience.
This is envisaged in a contract signed between the Azerbaijani Agriculture Ministry and the Frankfurt School of Finance & Management, read a message issued by the ministry June 9.
According to the contract, the Frankfurt School of Finance & Management will analyze the existing system of crediting, prepare corresponding recommendations and propose new credit products.
The message also said the Frankfurt School offers to conduct the crediting policy in three directions.
"The first direction envisages the improvement of the financing structure in the agrarian sector, which requires the coordination of state support with the support from international financial institutions and private investors," said the message. "The main goal of the structure improvements is to increase the efficiency and productivity of budget support."
The second direction envisages the preparation of agricultural sector crediting mechanisms, which will allow making the agricultural sphere more interesting for financial institutions, according to the message.
The third direction stipulates increasing the competitiveness of Azerbaijan's agriculture sector, improving credit and leasing products to meet the needs of borrowers.
The new agriculture crediting policy is being developed within the World Bank's Agricultural Competitiveness Improvement Project (ACIP).
The ACIP was approved Sept. 30, 2013, and its total cost is $53.25 million. The project's aim is to facilitate the access of agricultural producers to markets by strengthening sanitary and phytosanitary services, enhancing selected value chains, and providing financial services to agribusiness enterprises.
ACIP's closing date is Dec. 31, 2018.
Azerbaijan joined the WB in 1992.