Over AZN 41 million of business loans given to date - STATISTICS


October 4, Fineko/abc.az. Since the end of last year the Azerbaijan Mortgage & Credit Guarantee Fund has started the introduction of a credit guarantee mechanism and the provision of interest subsidies, the AMCGF says in a statement.

ABC.AZ informs that during the reported term, business loans in the total amount of AZN 41.759 million were given in various sectors of the economy with the support of the Fund. During this period the AMCGF held regular meetings with authorized banks and entrepreneurs with the purpose to study the existing problems and improve the credit and guarantee mechanism, carry out appropriate analysis. The analysis showed that when applying to banks, small and medium-sized businesses encounter high requirements in connection with the guarantee (collateral) and, as a result, their access to financial sources (loans) is limited.
As a result of the analysis, a completely new approach was applied in terms of risk management in the application of the guarantee mechanism and the requirements for guarantees (collateral) in giving of business loans within the existing mechanism were eliminated. As a result of the changes, on the basis of Fund’s credit rating model, it is already possible to use unsecured business loans under Fund’s guarantee for entrepreneurs belonging to the category of low risk, but the level of security of which is not satisfactory.

Author: Elmir Murad