BAKU, Azerbaijan, June 9. President Ilham
Aliyev has signed a decree on additional measures to improve the
mechanisms for providing guarantees and interest subsidies on loans
issued to business entities, as well as on amending several
relevant decrees, Trend reports.
According to the decree, the powers of the Mortgage and Credit
Guarantee Fund to provide guarantees for loans received by
entrepreneurs in manats and to subsidize the interest accrued on
these loans have been transferred to the Azerbaijan Business
Development Fund OJSC under the Ministry of Economy.
Until the decree enters into force, the Fund is required to
ensure the full exercise of its rights and obligations regarding
guarantees provided for loans received by entrepreneurs in manats
and the subsidization of interest accrued on these loans in
accordance with current regulatory acts.
The guarantee and interest subsidy mechanisms provided for in
the decree will initially be implemented as a pilot project until
December 31, 2030, in all regions of the country except for the
city of Baku and the Absheron District.
Under the interest rate guarantee and subsidy mechanisms, the
maximum annual interest rate on loans provided by authorized
organizations to business entities is 13%, with 50% of the accrued
annual interest rate on such loans subsidized from the state
budget.
The application of interest rate guarantee and subsidy
mechanisms is carried out both electronically and through the
acceptance and processing of paper documents until the “Electronic
Credit and Guarantee” information system covers the entire country,
with the exception of the city of Baku and the Absheron
District.
