Azernews.Az

President Ilham Aliyev has signed a decree on additional measures to improve the mechanisms for providing guarantees and interest subsidies on loans issued to business entities, as well as on amending several relevant decrees, AzerNEWS reports.

According to the decree, the powers of the Mortgage and Credit Guarantee Fund to provide guarantees for loans received by entrepreneurs in manats and to subsidize the interest accrued on these loans have been transferred to the Azerbaijan Business Development Fund OJSC under the Ministry of Economy.

Until the decree enters into force, the Fund is required to ensure the full exercise of its rights and obligations regarding guarantees provided for loans received by entrepreneurs in manats and the subsidization of interest accrued on these loans in accordance with current regulatory acts.

The guarantee and interest subsidy mechanisms provided for in the decree will initially be implemented as a pilot project until December 31, 2030, in all regions of the country except for the city of Baku and the Absheron District.

Under the interest rate guarantee and subsidy mechanisms, the maximum annual interest rate on loans provided by authorized organizations to business entities is 13%, with 50% of the accrued annual interest rate on such loans subsidized from the state budget.

The application of interest rate guarantee and subsidy mechanisms is carried out both electronically and through the acceptance and processing of paper documents until the “Electronic Credit and Guarantee” information system covers the entire country, with the exception of the city of Baku and the Absheron District.