BAKU, Azerbaijan, Mar. 13
By Fidan Babayeva - Trend:
For microfinance organizations providing affordable financial services, expanding access to modern alternative financing instruments for the population has had a positive effect, Executive Director of the Azerbaijan Micro-finance Association (AMFA) Jala Hajiyeva told Trend.
Hajiyeva said that the AMFA is interested in introducing new services for cashless payments.
“Currently, the EU-funded project accelerating the development of sustainable microfinance in the regions of Azerbaijan is being implemented in four economic zones of the country. The goal of this project is to expand the business knowledge and skills of micro-entrepreneurs to open and expand their business, to support existing business entities, including financial ones, to increase their income and increase the number of jobs in the agricultural sector,” Hajiyeva noted.
The executive director noted that the target groups of the project are micro and small rural entrepreneurs interested in starting their own business or expanding their small business.
Microfinance was introduced in Azerbaijan in the mid-1990s to meet the economic needs of up to 1 million internally displaced persons (IDP) and refugees (as a result of the Nagorno-Karabakh conflict with Armenia).
In 1996, the International Non-Governmental Organizations (INGOs) began offering microfinancing services to low-income locals and war-affected people to create income and employment opportunities.
The INGO began to meet informally to exchange business experience and remove restrictions on the provision of loans with interest rates. In December 2001, members of INGOs decided to consummate the group as an association, which will serve as the focal point for microfinance in Azerbaijan.
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