Azerbaijan Banks Association reveals future plans for agricultural financing

The Azerbaijan Banks Association (ABA) Public Union plans to continue research on agricultural banking products, ABA Executive Director Yunus Abdulov said at the 4th Agribusiness Development Forum held in Baku, Report informs.

According to Abdulov, ABA will also continue bilateral discussions within the framework of the proposals submitted to the Agrarian Credit and Development Agency (AKIA) under the Ministry of Agriculture, as well as the Agrarian Insurance Fund, analyze the complaints received from AKIA in the Expert Group on "Protection of the rights of financial services consumers" and make relevant recommendations.

In his opinion, warehouse and product certificates, the implementation of which is being actively pursued, will have a number of positive effects on financing, in addition to reducing product losses, increasing transparency, and strengthening export potential.

"A product certificate is an official document confirming that a product is stored in a warehouse and meets certain quality standards, and it allows farmers to take out collateral-based loans from banks and other financial institutions. As a result, farmers can develop their businesses by obtaining funds without selling their products. The application of product and warehouse certificates accelerates the development of e-certification, digital registration and tracking systems. This creates a basis for the application of innovations and technologies in the agricultural sector. It is not excluded that those aimed at financing will join their ranks. The availability of certified products can play a reliable basis for the application of tools such as preferential loans, subsidies or crop insurance from state or international funds," Abdulov said.