Local entrepreneurs receive over half of concessional financing for 2016

By Azernews

By Rashid Shirinov

Azerbaijan’s National Fund for Entrepreneurship Support (NFES) has allocated preferential loans in the amount of 134 million manats ($78.5 million) for entrepreneurs since early 2016.

The funds will ensure the realization of over 2,000 projects.

This was said by NFES CEO Shirzad Abdullayev on November 10 at the business forum in Azerbaijan's Ismayilli region. He noted that these projects will allow to open more than 6,200 new jobs.

Abdullayev said that businessmen of Mountain Shirvan economic region, which includes Ismayilli region, have received a total of 67.5 million manats ($39.5 million) of soft loans. These funds will help to open over 1,800 new jobs.

In the framework of the business forum, 37 entrepreneurs received preferential loans of 2.2 million manats ($1.3 million). These funds will be directed for creation of animal husbandry, intensive potato growing and gardening, as well as creation of a logistics center.

The National Fund for Entrepreneurship Support was established in 1992. Loans are allocated to entrepreneurs through authorized banks and non-bank lenders.

Until the end of 2016, NFES plans to provide 250 million manats ($146.5 million) of preferential loans to businessmen. Some 70 million manats ($41 million) of the loans will be granted at the expense of budgetary funds.

Allocation of these soft loans is directed at countering the effect of the global economic crisis to the Azerbaijani economy and minimization of the country’s dependence on the oil sector by improving other industries throughout Azerbaijan. The country takes steps to diversify the national economy and provide for the development of the agricultural and other spheres.

Recently, President Ilham Aliyev signed a decree on improvement of the Fund's activity.  Under the decree, a responsibility of controlling the process of return of soft loans by entrepreneurs has been transferred from the Central Bank of Azerbaijan to the Financial Markets Supervision Chamber.

Currently, Azerbaijan ranks 63 out of 189 countries in the World Bank’s ease of doing business index, and work to improve this index even more is being implemented.