Mortgage & Credit Guarantee Fund changes rules of providing guarantees and interest subsidies


June 19, Fineko/abc.az. The Azerbaijan Mortgage & Credit Guarantee Fund (AMCGF) has amended the Rules of procedure for granting guarantees and benefits for business loans in order to expand access to sources of financing for small and medium-sized businesses, as well as to support the improvement and promotion of the loan guarantee mechanism.

AMCGF reports that according to the amendment, the relevant amount was increased from AZN 200,000 up to AZN 350,000, depending on the list of documents submitted by the authorized bank for guarantee.

In addition, in accord with the new rules no guarantees are required from an entrepreneur with high rating, i.e. with a lower level of risk than the credit rating model. And the requirements for providing businesses with a moderate level of risk have been further mitigated.

The changes will ensure to eliminate restrictions on access of businesses to bank loans, increase banks’ interest to finance credit projects.