BAKU, Azerbaijan, Aug. 24
By Eldar Janashvili - Trend:
The new electronic credit platform for entrepreneurs, presented by Azerbaijan’s Ministry of Economy in June this year, continues receiving loan applications, Trend reports referring to the ministry.
According to the source, as of now more than 2,200 applications for business loans worth 660 million manats ($388.2 million) have been received through the platform since its creation. Decisions to issue loans totaling 27 million manats ($15.8 million) on 143 applications have already been made.
"Currently, other applications are being considered, and within a given time, entrepreneurs will be informed of the decisions," the ministry said.
The electronic credit platform, created by the ministry for issuing state-guaranteed loans to the local entrepreneurs in an easy and transparent form, has already become an affordable tool for ordering loans.
The use of a credit guarantee mechanism is especially important from the standpoint of maintaining economic activity and employment in the areas affected by the pandemic, as well as maintaining liquidity. Delivery of new business loans through an electronic credit platform allows entrepreneurs to apply for business loans online.
The applications are simultaneously considered by authorized credit institutions and the Ministry of Economy, thus creating the opportunity to track the status of applications in real-time, expanding access of the entrepreneurs to loans, and saving time and cost.
According to the mechanism of state guarantees for business loans and subsidies on interests, 60 percent of the portfolio of new business loans worth 500 million manats ($294.1 million) is provided with a state guarantee, and 50 percent of the annual interest rate of these loans is funded by the state.
(1 USD = 1.7 AZN on Aug. 24)