Within the framework of the protocol between the EU and Azeri Government, the process of transformation of the non-banking credit organization Agrar-credit into a bank has begun. Representatives of Agrar-credit told Trend it would be privatized once it has been transformed into a banking organization as per the agreement with the EU.
New Minister of Finance Samir Sharifov also agreed on the transformation of Agrar-credit into a bank, but the final decision is for the National Bank of Azerbaijan that issues banking licenses. Agrar-credit officials suggest that such procedure might be delayed until January or February 2007, saying the regional network, communication lines, management and personnel of credit organizations already enable Agrar-credit operating as a bank.
The EU has assisted Agrar-credit since 2003 upon its merger with Agrarian Credit Fund that had already been aided within the sustainable development program. This expert group was transferred to Agrar-credit after the merger, helping to develop instructions, rules etc. The project was completed in May 2004 but the EU continued its aid within the second project that commenced in late 2004.