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Soft loans for business in Azerbaijan become cheaper

1 August 2018 16:20 (UTC+04:00)
Soft loans for business in Azerbaijan become cheaper

By Trend

The annual interest rate on soft loans, allocated to support entrepreneurship, has been reduced from 6 to 5 percent in Azerbaijan, according to the "Procedures for the Use of Funds of the Entrepreneurship Development Fund of Azerbaijan."

President Ilham Aliyev on August 1 signed a decree to improve the mechanism of state support for the development of entrepreneurship, which provides for the creation of the Entrepreneurship Development Fund.

At the same time, the National Fund for Entrepreneurship Support, operating since 1997, has been liquidated.

According to the decree, the annual interest rate on the Fund's loans is 1 percent, another 4 percent is the rate of the authorized credit institution. The minimum amount of the soft loan that the Fund can provide is 5,000 manats and the maximum amount is 10 million manats.

The loans from 5,000 to 55,000 manats will be given for a period of up to 3 years, the loans from 50,001 to 1 million manats - for a period of five years, the loans from 1,000,001 to 10 million manats - for up to 10 years.

(1.7 AZN = 1 USD on Aug. 1)

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