Baku, Azerbaijan, Nov. 30
By Anvar Mammadov – Trend:
The authorized capital of Azerbaijan’s Credit Guarantee Fund will reach 100 million manats, according to the Credit Guarantee Fund's charter, recently approved by Azerbaijani President Ilham Aliyev.
The authorized capital is divided into 10 million shares worth 10 manats each. At the initial stage, all shares will belong to the state.
The main objectives of the Credit Guarantee Fund are to expand entrepreneurs' access to financial resources, as well as to form a credit system aimed at the allocation of risks in the financial sector.
The Credit Guarantee Fund will be managed by a Supervisory Board, consisting of seven people, as well as a Management Board.
The composition of the Supervisory Board will include a member of the Ministry of Finance, a member of the Ministry of Economy, a member of the Central Bank, a member of the Financial Market Supervisory Authority, a member of the State Oil Fund, a member of the National Confederation of Entrepreneurs (Employers') Organizations and a member of the Azerbaijan Banks Association.
The chairmanship in the supervisory board will be carried out on the principle of annual rotation among its members. Meetings of the supervisory board should be held at least once a quarter.
The board of the Credit Guarantee Fund will consist of three people, while members of the Supervisory Board and the audit committee can not be elected to the board.
According to the Charter, the Credit Guarantee Fund will use the credit rating system and other risk management tools. When working out a credit rating, all guarantees for loans must be divided into loans up to and over 200,000 manat.
Interest subsidies are granted for loans at a rate of no more than 20 percent per annum for the following conditions: for loans for up to three years - eight percent per annum, and for loans for more than three years - 10 percent per annum.
In this case, the borrower pays at least six percent of the loan. Subsidies are issued for a maximum of three years for loans for more than three years.
Banks-agents of the Credit Guarantee Fund must pay a one-time membership fee. For system-forming banks, this amount is 75,000 manat, for other banks - 40,000 manat.