Preferential sale of agricultural equipment launched in Azerbaijan
By Narmina Mammadova
The Azerbaijani state believes that the development of preferential terms makes a significant contribution to the development of the Azerbaijan’s agricultural sector, thus it continues to take new measures in this sphere.
The Agency for Agricultural Credits and Development has started applying new rules for the sale of agricultural equipment on preferential terms, the Azerbaijan’s Ministry of Agriculture reports.
At the expense of the agency, the first sale of agricultural equipment on such conditions was carried out in accordance with the new rules approved by the decree of the Azerbaijani President “On Improving Leasing Activities in Agriculture and State Support to Agriculture”.
The agricultural enterprise purchased equipment with a customs value of 172,000 manats for 68,000 manats, that is, with a 40 percent benefit. The company made a down payment of 20 percent of the sale price. The buyer has paid the remaining amount on the basis of a soft loan taken from an authorized credit institution.
According to the "Procedure for the use of funds of the Agency for Agricultural Loans and Development under the Ministry of Agriculture", the sale of agricultural equipment and breeding animals will now be carried out by the agency. Before the signing of this decree, these issues were dealt with by Agroleasing OJSC.
According to the new rules, agricultural machinery and breeding animals can be purchased on favorable terms and with the use of preferential loans from any supplier or any authorized lending organization.
Earlier in Azerbaijan, the maximum value of a soft loan from the above mentioned State Service was 200,000 manats. The changes also affected microloans, the maximum value of which was 1,000 manats. Now their value has been increased to 5,000 manats.
The grace period for loans is 12-24 months, and the loan repayment period is 2-5 years.
The maximum credit line, which the Agency for Agricultural Credits and Development can open for banks, is 5 million manats.
Agricultural loans from state in Azerbaijan are issued by the newly established Agency for Agricultural Credits and Development (formerly the State Service on Management of Agricultural Projects and Credits).
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