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Investment funds also to be involved to finance agrarian sector in Azerbaijan

16 February 2011 14:47 (UTC +04:00)

Azerbaijan Entrepreneurship Confederation President Mammad Musayev told that, debtor group method is decided to be extended for lending of entrepreneurs.

According to him, the bank liquidities in Azerbaijan are higher than 2 years ago: â€œBanks are obliged to use these methods to put up for sale their meansâ€. CBA will support the banks to launch branches in the regions.

On the other hand, the loans given to the entrepreneurs via credit unions must be increased for development of agrarian lending. At the same time, this process needs the credit unions to be strengthened. According to hi, there are near 80 credit unions in the country that their material and technical basis must be strengthened and be provided with technical aid.

He also noted that, CBA is ready to support this issue, as well: â€œIf anyone wants to establish credit union in the regions, CBA will discuss this issue earlierâ€. For this purpose, World Bank, International financial Corporation, EBRD will support this process.

The banks were also offered to decrease the credit interest for financing of agrarian sphere. According to him, there is a stable financial situation and the annual inflation is single-digit in the country and this will create opportunities for banks to decrease the interests. He offers the interests to be decreased from 12-8-21% to 15-18%.

Investment funds may be also useful for financing of agrarian sphere. Establishment of new investment funds, including involving of foreign investment funds are also discussed at the meeting. Joining of investment funds this process can exempt the agricultural enterprises from interest expenses.