AMFA proposes to expand funding to Azerbaijan's NBCOs via state mediation
Baku, Azerbaijan, June 15
By Azad Hasanli - Trend:
Azerbaijan Micro-Finance Association (AMFA) does not see the need to create separate funds for financing the non-bank credit organizations (NBCOs), the AMFA Executive Director Zhale Hajiyeva told Trend June 14.
She noted that it would be more expedient to open credit lines for NBCOs in the existing funds.
"It would be possible to open a credit line, for example, in the National Fund for Entrepreneurship Support. The minimum amount of a loan issued by the Fund is 5,000 manats. This is a large sum for some NBCOs, because they are often asked to issue micro-credits worth several hundred manats," said Hajiyeva.
She believes attracting the existing funds to finance the NBCOs will help expand the loan portfolio of the latter.
According to the Central Bank of Azerbaijan, the loan portfolio of the NBCOs in January-April 2018 amounted to 393.2 million manats (3.3 percent of the total portfolio of credit institutions).
The National Fund for Entrepreneurship Support was established in 1997. This year, it is planned to allocate through the Fund the loans in the amount of 170 million manats.
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