Baku, Azerbaijan, Nov. 7
By Huseyn Valiyev - Trend: State Fund for Development of Information Technologies under the Azerbaijani Ministry of Communications and Information Technologies is negotiating with private companies and holding companies for their long term participation in start-up projects as investors, the State Fund's Executive Director, Elchin Zeynalov said on November 7.
Zeynalov made the remarks at the 'Start-up Days' conference held in Baku.
According to him, some of these holding companies are opening private funds, which will obtain the opportunity of being supported by the State Fund. The main term for this will be the support of start-up projects and innovative ideas by private funds.
"It is possible that financial support for start-up projects by private foundations will not be as large as the financing of the State Fund, but their support will also be important in the development of innovative ideas. There will be several of such private foundations, what will have a positive impact on the support of private entrepreneurship in the country," Zeynalov said.
The financing of the projects by the State Fund is expected to start in 2014. Issuance of small, medium and large loans as well as grants from the State Fund is envisaged for financing the project.
The amount of small loans can range from 10,000 to 50,000 manats (with a term of three years), medium - from 50,000 to 500,000 manats (up to five years), large - from 500,000 to five million manats (10 years).
The interest rate on the loans will not exceed five per cent per annum. The grant's maximum amount may reach 300,000 manats (for 36 months). Small grants are provided at a rate of 10,000 to 100,000 manats, medium - from 100,000 to 200,000 manats, and large - from 200,000 to 300,000 manats.
Banks and non-bank credit organizations will be attracted as authorized agents for financing of IT-projects.
The official exchange rate on Nov. 7 is 0.7843 AZN/USD.