Vusal Gasimli: AZN 1 bn to be allocated to support existing loan portfolio


March 31, Fineko/abc.az. 290,000 micro-entrepreneurs are to receive governmental support to be based on the amount of taxes they paid in 2019. State programs on tax incentives and support for tax holidays and mortgage loans have also been developed.

ABC.AZ reports that these thoughts were voiced by Vusal Gasimli, the executive director of the Center for Analysis of Economic Reforms & Communications.

He noted that government’s support is currently planned to overcome difficulties that may arise in credit payments under the influence of global shocks.

According to Gasimli, difficulties are predicted not only in households, but also with the loan payments of some entrepreneurs: "Currently, AZN 7 bn of the loan portfolio for AZN 15.5 bn has been given to households and for AZN 6.1 bn to the private sector.

In particular, loans for AZN 2.4 bn were given to the trade and services sector, which was most affected by the pandemic, and for AZN 1.2 bn to the transport & communications sector. The State will allocate AZN 1 bn for support of the existing loan portfolio. And in this case, such criteria as the spheres affected by the damage and credit discipline will be taken as a basis. The National Entrepreneurship Support Fund will provide 10% loan support, which covers a significant portion of the loan interest. Thus, in Azerbaijan the average loan interest is 14% - 8.8% on legal entities and 16.6% on individuals. At the same time, the program to support new loans will cover a maximum of 15% per annum. Thus, half of this loan interest will be paid by the NESF."