Four Banks selected for funding start-up projects

ICT Materials 5 December 2013 13:47 (UTC +04:00)

Baku, Azerbaijan, Dec. 5

By Huseyn Valiyev - Trend:

The Azerbaijani Supervisory Board of the State Fund for Development of Information Technologies under the Ministry of Communications and Information Technologies has selected four authorised banks through which start-up projects will be funded, the State Fund's Executive Director, Elchin Zeynalov told Trend on Dec.4.

Pasha Bank, Bank Respublika, Demir Bank and Rabita Bank were selected as the fund's authorised banks, according to Zeynalov.

"A contract with the banks is to be signed in the near future. The projects will be financed by the State Fund which will receive five million manats ($6.375.114) from the 2014 state budget," Zeynalov said.

Zeynalov did not rule out the possibility of extending the list of authorised agents until late December. The total number will not exceed 10 credit institutions.

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 (from $12,750 to $63,751) (with a term of three years), medium - from 50,000 to 500,000 manats (from $63,751 to $637,511) (up to five years), large - from 500,000 to five million manats (from $637,511 to $6.375.114) (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 ($382,506) (for 36 months). Small grants are provided at a rate of 10,000 to 100,000 manats (from $12,750 to $127,502) , medium - from 100,000 to 200,000 manats (from $127,502 to $255,004), and large - from 200,000 to 300,000 manats (from $255,004 to $382,506).
The official exchange rate on Dec.5 is 0.7843 AZN/USD.