Azerbaijan, Baku / Trend corr. I.Khalilova / Being the project agent of 'Agricultural development mountain and high mountain Azerbaijani regions' of the International Fund of Agricultural Development (IFAD) Turanbank has financed projects for AZN 300,000 sum, Fazil Musayev, the deputy chairman of the bank, said.
Some AZN 200,000 was allocated from the credit component of the project for five years term. About 100,000 were allocated from the revolver account.
The bank received the funds on annual interesting rate which correspond the rate of the National Bank of Azerbaijan (NBA) from IFAD. Turanbank can allocate credits on annual interesting rates from 16% to 21% depending from the financial functioning and volume of crediting.
Despite increase of interesting rate of re-financing of NBA by 13% no changes took place in credit allocation, Musayev said.
Reprocessing of agrarian production can be credited by 16%, its production, purchase of technical and equipments by 18%, trade of agrarian production by 21%. Long-term and large credits are considered in individual order, and their interesting rates make up by 16%.
Implementation of the project covered Lerik, Gadabay, Shahbuz, Gabala and Guba regions of Azerbaijan in 2006.
The credit agreement with IFAD on financing of the project was signed in 27 November 2000. The total budget of the project made up $10mln, including $9mln from IFAD, $1.5mnl from the Government ($400,000 through cashes and the other through tax privileges). Micro financing is being implemented within the frame work of the project since 30 August 2004. The total sum of resources of credit component of the project made up $2.65mln, and $1.5mln of them was allocated for micro financing and is developed by non-bank organization of Mikromaliyyelesdirme.