Livestock sector dominates for agriculture loans issued in Azerbaijan
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By Narmina Mammadova
The economy has entered a period of stable growth. Many banks in Azerbaijan are preparing for 2019, which should be a year of lending. And since the steady growth of the economy has begun, then, accordingly, it needs financial support, which can be provided primarily through loans.
Livestock sector is leading in the number of agricultural loans in Azerbaijan Mirza Aliyev, head of the State Service for Management of Agricultural Projects and Credits under the Ministry of Agriculture said at a press conference in Baku on December 18.
“84 loans were issued in this sector in 2018,” he said. “18 more loans were issued in horticulture."
“In general, since the beginning of lending in 2018, 151 farmers from 41 Azerbaijani regions have been provided with loans worth 10 million manats in the agricultural sector,” Aliyev said.
Aliyev noted that 68 percent of the Civil Service portfolio is placed in 10 banks, 19 percent of the portfolio in 11 NBCOs and 13 percent in 19 credit unions.
"In general, since 2007, loans worth 210 million manat have been issued," he said.
The State Service for Management of Agricultural Projects and Credits has been operating in Azerbaijan since 2004.
The agency provides support in lending to the areas of production and processing of agricultural products, water management, land reclamation and others. At the same time, the agency participates in the development and implementation of government programs aimed at the development of the agriculture sector.
It is planned to establish an agricultural insurance fund in 2018 within the framework of the implementation of the strategic road map for the production and processing of agricultural products.
The possibility of creating an insurance fund to expand the coverage of agricultural insurance will be explored. It is planned to study an international experience in this field and prepare reports including an analysis of the potential impact of creating a fund on producer insurance and the development of the agricultural sector as a whole.
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