Khachmaz entrepreneurs receive new soft loans

By Azernews

By Leman Mammadova

Entrepreneurship Development Fund under the Ministry of Economy continues its activities to train entrepreneurs and provide them with financial support to stimulate entrepreneurship.

In this regard, a business forum on soft lending for entrepreneurship was held in Khachmaz region on September 5.

Some 41 entrepreneurs of Guba-Khachmaz economic region received soft loans worth 3.8 million manats ($2.24 million). Loans will be directed to tourism, livestock, horticulture, the creation of agricultural parks, container production etc.

More than 300 jobs will be created through the implementation of investment projects using these loans.

In his speech, Sahib Mammadov, Deputy Minister of Economy, noted that 76.2 million manats ($44.84 million) of soft loans were allocated for investment projects with a total cost of 265.8 million manats ($156.40 million) to 721 entrepreneurs this year.

He said that the implementation of investment projects with these loans will create up to 3,000 jobs.

In total, including loans issued at the event, 217.3 million manats ($127.86 million) of soft loans have been so far provided to finance 2,731 investment projects of entrepreneurs operating in Guba-Khachmaz economic region.

As part of the forum, model investment projects on intensive horticulture, seedling cultivation, livestock breeding, beekeeping, logistics centers, dried fruit production and milk processing enterprises were presented.

Moreover, a hazelnut processing facility in Khachmaz, which was granted with soft loan, was viewed.

The Azerbaijani Entrepreneurship Development Fund was established on the basis of the National Fund for Entrepreneurship Support, operating in the country since 1997.

The authorized capital of the Fund was set at 1.9 billion manats ($1.1 billion). Loans are issued for 5,000 ($2,933) to 50,000 manats ($29,326) for a period of 3 years, from 50,000 to 1 million manats ($586,510) for 5 years and from 1 million to 10 million ($5.87 million) for 10 years. The annual loan rate is 5 percent.

The Fund intends to issue soft loans worth 160 million manats ($94 million) this year.

In general, the Fund has issued soft loans in the amount of more than 2.3 billion manats ($1.35 billion) so far. About 68 percent of the loans was directed to the agricultural sector.