A project team will be created in Azerbaijan with the joint participation of the Central Bank of Azerbaijan (CBA) and the Ministry of Agriculture in order to develop a mechanism for financing agriculture, agricultural land and farmers, Trend reports citing CBA.
According to the source, at a joint meeting of the CBA leadership with the heads of the Ministry of Agriculture, including the Agrarian Credit and Development Agency, as well as the National Confederation of Entrepreneurs (Employers’) Organizations and the Azerbaijan Banks Association, an agreement was reached between the country's financial regulator and the ministry to establish a project group.
The meeting participants also discussed the possibility of improving access to financial services in districts and rural areas.
They focused on the ways of solving the problem of collateral and increasing soft loans, facilitating access of farmers to financial services , as well as access of small rural businesses to soft loans, providing them with loans secured by unclaimed or movable property, state registration of ownership of agricultural land and the activation of the mortgage property.
They also discussed the issue of improving the guarantee mechanism of loans, considered possibilities of increasing the accountability and transparency of agricultural entities, including the registration of family farms by municipal authorities, their cooperation, the creation of specialized credit unions with the start of a pilot project in a certain village.
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