Credit management under WB's agrarian project to assign to National Fund for Entrepreneurship Support
Today the World Bank and Azeri Government are signing the protocol of conversations on Phase 2 of adapted program of agriculture development and crediting in Azerbaijan, governmental officials told Trend. Meanwhile, crediting banks and leasing companies of agricultural production processing and storage is still pending. The Ministry of Finance suggested assigning the management of allotted $15mln to National Fund for Entrepreneurship Support. Bank and leasing companies will have an access to WB project resources through National Fund.
Since Ministry of Agriculture is the project beneficiary, it is only left to coordinate this process with this agency. Governmental authorities also consider Finance Ministrys offer affordable as already approved crediting terms remain intact after passing the funds to National Funds disposal.
In case the banks receive credits in national currency, the interest rate is as per NBAs refinancing rate (9%), and if in USD, then at libor rate plus commissions of up to 2%. Loan terms shall be set forth in agreements between banks and the Finance Ministry.
Total amount of credit component within the project makes $18.9mln, from which $9.3mln are allotted from the project funds and $9.6mln from revolving fund of first agricultural project.
Total amount of the project is $57mln, from which $1.6mln is from Japanese grant, $9.6mln taken from revolving fund, $12 .5mln issued by the government. International Development Association (IDA) issues $20.5mln and $8mln on toughened terms for 35 years with 10 year payment delay and at libor-2% annual interest rate (currently 3% annual interest).