Baku, Azerbaijan, Jan. 3
Trend:
The value of guaranteeing and subsidizing loans in Azerbaijan amounted to 17.5 million manats in 2018, Trend reports with reference to the Azerbaijan Mortgage and Credit Guarantee Fund.
The mechanism of guaranteeing and subsidizing loans in Azerbaijan was first introduced in 2017, but its actual use began from last year. Loan guarantee is provided to entrepreneurs operating in the non-oil sector to finance their domestic operations.
The amount of the loan for which the fund can provide a guarantee shouldn’t be less than 30,000 manats. The aggregate amount of all credits of one entrepreneur for whom the guarantee is provided shouldn’t exceed 5 million manats. Guarantees are provided for loans issued for a period not exceeding seven years.
As for subsidizing loans, it applies to loans with an annual interest rate of no more than 20 percent. At the same time, at least six percentage points of the loan rate should be paid by the entrepreneur.
(1.7 manats = 1 USD on Jan. 3)