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Value of preferential loans for agriculture expanded in Azerbaijan

21 December 2018 [12:10] - TODAY.AZ

By  Trend


Entrepreneurs operating in the field of agriculture in Azerbaijan will be able to receive preferential loans from state worth up to 1 million manats, Trend reports.

This is stipulated by the “Procedure for using funds of the Agency for Agricultural Credits and Development under the Ministry of Agriculture”, approved by decree of Azerbaijani President Ilham Aliyev “On Improving Leasing Activities in Agriculture and State Support to Agriculture”.

Agricultural loans from state in Azerbaijan are issued by the newly established Agency for Agricultural Credits and Development (formerly the State Service on Management of Agricultural Projects and Credits).

Earlier in Azerbaijan, the maximum value of a soft loan from the above mentioned State Service was 200,000 manats. The changes also affected microloans, the maximum value of which was 1,000 manats. Now their value has been increased to 5,000 manats.

Loan type

New value of loans (in manats)

Previous value of loans (in manats)

microloans

up to 5,000

up to 1,000

small loans

from 5,001 to 30,000

from 1,000 to 20,000

average loans

from 30,001 to 100,000

from 20,000 to 50,000

large loans

from 100,001 to 200,000

from 50,000 to 200,000

loans for purchase of agricultural production facilities

up to 1,000,000

-

The grace period for loans is 12-24 months, and the loan repayment period is 2-5 years.

The maximum credit line, which the Agency for Agricultural Credits and Development can open for banks, is 5 million manats.

Also, in order to deal with problem loans, a new income distribution approach will be applied. In particular, the agency will transfer half of the interest income from loans issued to a special account. In the future, these funds will be used to write off bad loans from the balance.

(1.7 manats = $1 on Dec. 20)

URL: http://www.today.az/news/business/177305.html

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