BAKU, Azerbaijan, Apr. 7
By Zeyni Jafarov - Trend:
The issuance of credit funds to groups of borrowers in Azerbaijan was introduced by the Executive Credit Agency within the World Bank project, and later within the International Fund for Agricultural Development (IFAD) project, Arif Aliyev, Chairman of the Board of the Executive Credit Agency, told Trend.
According to the chairman, this lending is focused on the fact that the representatives of the group are both borrowers and guarantors of each other, and as a result, a favorable environment is created for the formation of a group of potentially interested in repaying loans of each borrower.
Aliyev said that the minimum requirements for such borrowers are regulated by the internal instructions of each NBCO within the requirements of the CBA.
According to the Executive Credit Agency, this is the targeted issuance of loans for a certain category of persons, which includes at least five people employed in agriculture sector and living in a certain area of Azerbaijan.
Speaking about the commission and the interest rate, Aliyev noted that these limits are regulated by the internal instructions of the credit institution within the framework of the requirements of the CBA and depend on the term and purpose of the loan, as well as on the financial discipline of the borrowers of this group.
“According to our internal instructions, at the moment this amount ranges from 14 percent per annum for a period of up to two years,” the chairman said.
Despite a difficult period in 2020, the agency managed to end the year with a profit, he added.
Aliyev also said that at the moment various electronic platforms in the credit sphere are being actively introduced, and the Executive Credit Agency, being a member of the Azerbaijan Microfinance Association (AMFA), participates in discussions on the creation of similar electronic platforms for NBCOs, including for the use of platforms in the field of agricultural lending.
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