BAKU, Azerbaijan, Jan. 29
By Fidan Babayeva - Trend:
The total authorized capital of non-bank credit organizations (NBCOs) in Azerbaijan increased from 113.8 million manat ($66.9 million) to 120.3 million manat ($70.8 million) in 2020, Chairman of the Board of the Azerbaijan Micro-finance Association (AMFA) Jalal Aliyev told Trend.
"A positive trend was observed in the profit of NBCOs," Aliyev added. ""As for the final result, the net profit increased from six million manat ($3.5 million) to 9.9 million manat ($5.8 million)."
Referring to the recession in the microfinance market of the country, the chairman stressed that the volume of loans issued by NBCOs as of December 31, 2019 amounted to 268.8 million manat ($158.1 million) while as of December 31, 2020, this amount reached 263.4 million manat ($154.9 million).
"As we can see, despite the quarantine measures and restrictions associated with the pandemic, the decrease in the volume of the issued loans was insignificant," the chairman said. "If we compare the end of the third quarter of 2020 and 2019, we will see an increase in the volume of the issued loans from 255 million manat ($150 million) to 275.4 million manat ($162 million)."
"The Azerbaijan Micro-finance Association has implemented more than 50 international projects until 2021," Aliyev added. "The promotion and lending of women's entrepreneurship will be among the main spheres of activity of the Azerbaijan Micro-finance Association in 2021."
The microfinance was introduced in Azerbaijan in the mid-1990s to meet the economic needs of almost one million internally displaced people (IDPs) and refugees who appeared as a result of the Armenia-Azerbaijan Nagorno-Karabakh conflict.
The international non-governmental organizations (NGOs) began to offer microfinance services in 1996 to low-income layers of the population, war-affected people to create employment opportunities and an opportunity for gaining profit.
Informal meetings have begun to exchange business experience and remove restrictions on the provision of loans at interest rates.
The members of the international non-governmental organizations decided to formally register the group as an association that will act as a coordination center on microfinance in Azerbaijan in December 2001.
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