BAKU, Azerbaijan, Apr. 14
By Fidan Babayeva – Trend:
The threat of an outbreak of coronavirus infection in Azerbaijan had a strong negative impact on microfinance, the Azerbaijan Micro-finance Association (AMFA) Executive Director Jala Hajiyeva told Trend.
According to her, the issue is that after introduction of the Law on non-cash payments, AMFA’s non-bank credit organizations (NBCOs) became dependent on banks because of absent checking accounts for crediting their clients.
"The pandemic has created new challenges for managing internal business processes of NBCOs and customer relations. At present, micro- and small entrepreneurs are adapting to the realities of a new era (distant work, online sales, etc.). Some 30 percent of employees in the NBCOs continue working on the basis of a document on permitting activities in a special quarantine regime and serve clients from 10:00 until 14:00, and in the afternoon, the employees conduct internal documentation of organizations. The remaining 70 percent of employees work remotely from home," she said.
According to her, thanks to the Skype and Zoom platforms, video conferences are carried out daily. Moreover, WhatsApp platform is used for daily communication and control of various groups of profiles.
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 micro-financing 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.
AMFA has been functioning in Azerbaijan since 2004. Its main mission is to strengthen the potential of microfinance organizations in the country and create conditions for joint rational activities within the interests of the microfinance community.