Azerbaijan continues to support coronavirus-affected entrepreneurs

Business Materials 13 June 2020 17:11 (UTC +04:00)

BAKU, Azerbaijan, June 13

By Fidan Babayeva – Trend:

Azerbaijan continues to support coronavirus-affected entrepreneurs, as the state will finance 10 percent of the annual interest rate on manat loans received until March 10, 2020 with the existing loan portfolio of 1 billion manat ($588.2 million), Trend reports citing Azerbaijan’s Ministry of Economy.

The state will finance the mentioned interest rate during 12 months within the period starting from March 2020.

“This mechanism will be applied regardless of the term and interest rate on loans. Around 100 million manat ($58.8 million) is provided for this purpose, with 50 million manat ($29.4 million) allocated from the state budget, and the other half from the Entrepreneurship Development Fund," said the report.

“The introduction of this mechanism will not only reduce the burden on affected entrepreneurs, but will also have a positive impact on the liquidity of credit institutions. In general, the implementation of these programs will restore economic activity, increase the financial accessibility of entrepreneurs, especially small and medium-sized ones, accelerate investments in the sectors affected by the COVID-19 pandemic, and maintain employment in these areas, share financial risks, revive the financial and banking sectors,” the report said.

The report says that the improvement of financial condition of entrepreneurs suffered from COVID-19 will eliminate the risks in the banking sector.

The volume of financial support on confirmed appeals has surpassed 61.5 million manat ($36.1 million). By June 7, the State Treasury Agency of the Ministry of Finance ensured the transfer of funds in the amount of 60.8 million manat ($35.7 million) to 101,698 private micro-entrepreneurs.

(1 USD = 1.7 manat on June 13)


Follow the author on Twitter: Fidan_Babaeva