BAKU, Azerbaijan, March 5.​ The information
systems of the Azerbaijani Ministries of Agriculture and Economy
will be integrated with each other, Trend reports.


This issue is reflected in the decree on regulating a number of
issues on preferential financing in agriculture and amending some
related decrees signed by the President of the Republic of
Azerbaijan, Ilham Aliyev.


According to the decree, the Ministry of Agriculture must ensure
the organization of the spending of loans for the intended purpose
specified in Part 6-1 of the "Rules for the use of funds of the
Agrarian Credit and Development Agency under the Ministry of
Agriculture", approved by the decree of the President of Azerbaijan
dated December 19, 2018, through the "agricultural trade (tapaqro)"
subsystem of the "Electronic Agriculture" information system, and
the integration of that information system with the relevant
information systems of the Ministry of Economy in order to transfer
information about this.


The Ministry of Finance, together with the Ministry of
Agriculture, should take measures to use the 10 million manat ($5.9
million) portion of the funds allocated from the 2026 state budget
for the purpose of paying subsidies to agricultural producers to
finance interest on loans, and should include the funds required
for this purpose in the draft state budget in the following
years.


By the decree, in order to finance the costs of agricultural
production (purchase of agricultural production means, including
mineral fertilizers, biohumus, certified seeds and pesticides, as
well as the use of agrotechnical services), the payment of the part
of the interest calculated on the principal debt of loans granted
to business entities for a period of up to one year at the expense
of authorized organizations (except for leasing organizations) to
be financed at the expense of the funds of the Agricultural Credit
and Development Agency is ensured at the expense of funds allocated
to the Agency for this purpose from the state budget.


The annual interest rate of loans financed by the Agency's funds
and the list of agricultural products whose production is financed
with these loans are determined in accordance with the "Rules for
subsidizing agricultural production" approved by the Decree of the
President of the Republic of Azerbaijan dated June 27, 2019.


Business entities officially apply to the authorized
organization (except for leasing organizations) for the provision
of preferential loans specified in this Regulation. The authorized
organization (except for leasing organizations) makes a decision on
the provision of loans by analyzing credit risks no later than 15
business days from the date of registration of applications, or
sends (presents) a reasoned letter of refusal to business entities.
The authorized organization (except for leasing organizations)
submits to the agency the required information (on the amount of
the loan, its purpose, the period of use, and the registration of
the business entity in EKTIS) and documents regarding the
application it positively evaluates. The agency, within 10 business
days, verifies the compliance of the submitted information with the
indicators determined in accordance with paragraph 6-1.2 of this
regulation and approves the interest amount calculated in
proportion to the loan amount to be granted or send (submit) a
reasoned refusal letter to the authorized organization (except for
leasing organizations).


The authorized organization (except for leasing organizations)
transfers the loan amount allocated in accordance with the
procedure provided for in the regulation to the card account
(current account of a legal entity) of the business entity and use
it without cashing out. The business entity transfers the loan
funds to the accounts of suppliers through the "agricultural trade
(tapaqro)" subsystem of EKTIS for the purpose declared during its
application in accordance with this regulation. Documents
confirming the delivery of relevant products, work, and services in
exchange for the loan are integrated into EKTIS with the consent of
the deliverer through the Automated Tax Information System of the
State Tax Service under the Ministry of Economy.


Entrepreneurs must pay their principal and interest debts on
preferential loans received and the part of the interest debts not
financed by the agency's funds in accordance with the terms of the
contract. The agency ensures the calculation of the financed part
of the interest on the loans granted and the implementation of
payments on that part no later than once a quarter. The agency
doesn't bear any other obligations and responsibilities under the
contract, except for the financed part of the calculated interest
debt.


If, during the monitoring carried out in accordance with this
regulation, cases of non-use of the loan funds or their non-use for
their intended purpose are detected within three months, the agency
suspends the calculation and payment of the financed part of the
interest.


In the case provided for in this regulation, the authorized
organization (except for leasing organizations) returns the paid
concessional funds to the agency. If, after the written request of
the agency, the authorized organization (except for leasing
organizations) doesn't ensure the transfer of funds within 30
business days, the agency takes measures stipulated in regulatory
legal acts to return the delayed amount. The returned funds are
used in accordance with the purposes of this regulation.


In accordance with this regulation, the authorized organization
(except for leasing organizations) demands the funds returned to
the agency from the business entity. Such business entities aren't
granted loans with a part of the interest financed by the agency
for the next three years.