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Loans at 5% per annum to be allocated to ICT companies in Azerbaijan

03 April 2013 08:55 (UTC +04:00)

According to rules, one of the Fund’s activities is allocation of preferential loans to the companies operating in ICT sector, which is realized by the authorized credit institutions. The loans-to-be-allocated are divided into small (AZN 10,000-50,000), medium (AZN 50,000-500,000) and large (AZN 0.5-5 mln). Small loans can be given for up to 3 years, medium loans – 5 years and large loans – 10 years. The maximum amount of preferential loans can not exceed AZN 5 mln.

Interest rate of Fund’s loans is determined at 1% per annum. In turn, the highest rate of annual interest rate applied by authorized credit institutions to loans can not be above 5%. The first quarter of a period given to loan is considered grace period. During this period, only interest debts are paid by the businesses. The authorized credit institutions inform the Fund about grace period given to the businesses.