Currently, the credit unions included in the composition of Azerbaijan Credit Union Association (ACUA) have issued more than 10,000 credits amounting to $ 17 mln, Trend reports. Today the credit unions face problems in their activities and the key problems are linked with the prudential norms, the Chairman of the Association Elchin Bagirov told. The legislation does not permit credit unions to attract deposits and therefore, the newly created credit unions cannot carry out their activities without attracting finances as they begin to function with authorized capital in amount of AZN 4.000. It is impossible to function at the expense of these finances, Bagirov considers.
The financial resources for the credit unions are the World Bank, Social Fund for Development of Internally Displaced Persons, various donors and National Fund for Entrepreneurship Development.
Unlike banks and micro-finance organizations, the credit unions incur more expenditure while granting credits. Therefore that can not finance the projects with low interest rates while only the accounting rate of Azerbaijan National Bank (ANB) totals to 9.5%. The amount of the credits given by the credit unions varies from AZN 100 to 2000, Bagirov underlined.
ACUA was created in 2003 by 2 individuals and five credit unions. At present, the Association brings together 53 members and three individuals. Since October 25, 2005, the Association has been the founder of the Executive Credit Agency established within the project of the World Bank.