BAKU, Azerbaijan, Apr.2
By Fidan Babayeva – Trend:
The Azerbaijan Microfinance Association (AMFA) plans to increase financial support for small entrepreneurs in the country’s districts and expand the development of the microfinance market, Jalal Aliyev, Chairman of the AMFA board, told Trend.
According to Aliyev, following the successful implementation of a number of projects in 2020, the association had managed to achieve noticeable results.
“In 2020, the AMFA successfully completed projects for the development of small businesses in the country's districts, as well as implementation of two projects, continued the implementation of current projects and began to implement one new one. In all projects, small businesses with low revenues, in which more than 150 people (women and men) acted as beneficiaries, received financial assistance. Within the projects, they, as micro entrepreneurs, were provided with funds to purchase equipment and raw materials for business development,” Aliyev said.
Speaking about foreign investments in the microfinance sector, the chairman emphasized that the financing of NBCOs from international financial institutions has decreased in Azerbaijan.
“One of the reasons for the funding cuts is that some foundations have changed the criteria for regional performance in their strategic plans. Many districts are interested in the microfinance sector in developing countries. Another reason is the risks of the exchange rate, which can be increased by means of funds attracted in foreign currency,” he said.
Aliyev reminded that the total authorized capital of non-bank credit organizations (NBCOs) in Azerbaijan in 2020 increased from 113.8 million manat ($66.9 million) to 120.3 million manat ($70.7 million).
“The Azerbaijan Microfinance Association has implemented more than 50 international projects until 2021. Among the main activities of the AMFA in 2021 will be the stimulation and lending of women's entrepreneurship,” he said.
Microfinance was introduced in Azerbaijan in the mid-1990s to meet the economic needs of almost one million IDPs and refugees who appeared amid the Nagorno-Karabakh conflict.
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