VTB Bank, Entrepreneurship Development Fund of Azerbaijan issuing loans to businesses
BAKU, Azerbaijan, Sept.25
By Zeyni Jafarov - Trend:
VTB Bank (Azerbaijan), together with the Entrepreneurship Development Fund of Azerbaijan, has started concessional lending to businesses, the bank told Trend.
“At the initial stage, the fund allocated a limit of 5 million manat ($2.9 million) to the bank. A loan through the Entrepreneurship Development Fund is issued at a preferential rate of 5 percent per annum to finance investment projects. Also, customers are given the opportunity to update the existing equipment at the enterprise using this credit line. Loans are issued for up to 10 years. In addition, a grace period is provided for a loan for investment purposes and in the first half of the term the borrower pays only the accrued interest,” said VTB Bank.
The ministry stressed that the provision of concessional loans will allow entrepreneurs to reduce the payment burden, focus on business development, and only after the completion of the investment phase begin to pay the principal debt.
“Lending under this program will help build up the bank's loan portfolio. In addition, it will expand the list of economic sectors in which the bank provides services,” the bank noted.
“Cooperation with the fund provided them with the opportunity to supplement their range of services and thereby offer customers new opportunities. These funds will be used to finance projects in priority sectors of the economy, especially for the development of the non-oil sector and innovative technologies,” VTB Bank added.
(1 USD = 1.7 AZN on Sept. 25)