BAKU, Azerbaijan, October 9. Agriculture
accounts for around 45% of the loan portfolio of the Azerbaijan
Business Development Fund, Deputy Chairman of the Fund’s Management
Board Murad Abdullayev said at the 3rd International Agro Business
Forum in Baku on Friday, Trend’s correspondent reports from the event.


He noted that agriculture was one of the sectors of major
importance to Azerbaijan’s economy, with significant development
potential. The fund aims to mobilize existing support mechanisms to
accelerate the sector’s development.


According to Abdullayev, the Azerbaijan Business Development
Fund was established through the merger of the Entrepreneurship
Development Fund and the Azerbaijan Investment Company. It is one
of the state’s key financial and development institutions.


“We support entrepreneurs operating in agriculture and other
sectors. This support is provided through direct capital
investments, on the one hand, and concessional loans, on the
other,” he said.


Last year, the fund’s total loan portfolio exceeded $235.3
million. Based on agriculture’s share of the portfolio,
approximately $58.8 million to $88.2 million in financial resources
was directed to the sector, Abdullayev said.


He also highlighted several issues that make it difficult for
agricultural entrepreneurs to access financing. One of the main
challenges, he said, concerns land ownership documents.


“Although the Azerbaijan Business Development Fund manages state
funds, we work directly with banks. Banks must complete the
necessary documentation to assess and insure risks during the
financing process. Land ownership documents play an important role
among these records,” Abdullayev explained.







He added that proposals were being prepared at various levels to
address issues related to land documentation.


Another challenge highlighted by the fund official was
inadequate accounting and reporting practices, particularly among
small-scale farms. According to him, some entrepreneurs generate
income but cannot substantiate it with official documentation,
limiting their access to financing.


“Some entrepreneurs generate substantial income and profits but
cannot substantiate them with official documents. This creates
significant difficulties in accessing financing. It would be
appropriate to organize training sessions for small farm owners on
accounting and reporting,” he said.


Abdullayev added that the fund had simplified documentation
requirements to facilitate financing for small farms. In
particular, the business plan previously required from small farms
is no longer mandatory; entrepreneurs now need to submit only an
information inquiry form.


“I consider this one of the important steps taken by our fund to
improve access to financing in agriculture,” he said.