Azerbaijani entrepreneurs have received more than 500 million manats (just over $294 million) of preferential loans with the guarantee of the Mortgage and Credit Guarantee Fund, Report informs, citing the fund.
Of this amount, 65.155 million manats (over $38.32 million) were allocated in the first nine months of 2024.
For the first time in Azerbaijan, the provision of guarantees for loans in manats received by entrepreneurs from authorized banks and subsidies for interest calculated on these loans began with the order of President Ilham Aliyev dated November 29, 2017. According to the order, the formation and development of the credit guarantee mechanism was identified as a priority task for the Fund.
Within the framework of the mechanism, the average term of guaranteed loans is 30 months, with an actual interest rate of 6% for entrepreneurial loans due to the provision of subsidies for a part of the calculated interest. The loan amount allocated to one entrepreneur ranges from 30,000 ($17,647) to 5 million manats (just over $2.94 million).
The loans are allocated to areas related to the production and processing of industrial products, agriculture and food industry, construction sector, development of tourism and infrastructure, production of machinery and equipment, trade, and service sector.
The projects financed through loans allocated to entrepreneurs with the guarantee and interest subsidy of the Fund are expected to create 6,500 new jobs.
Moreover, under the presidential order dated August 24, 2022, the range of entrepreneurship support tools has been expanded to increase the access to financial resources for micro and small entrepreneurs operating in the non-oil sector, as well as issuing companies. Starting from 2024, two new tools have been introduced: credit portfolio guarantee for loans received by entrepreneurs in manats and guarantee mechanisms for the obligations of issuers (entrepreneurs) on bonds.