(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 29. Azerbaijani
commercial banks provide a state guarantee of return of part of the
loan amount up to 60 percent to entrepreneurs affected by the
coronavirus pandemic (2020-2021), Azerbaijan's Ministry of Finance
said, Trend reports.
"According to a Cabinet of Ministers resolution dated July 9,
2020, Azerbaijani commercial banks provide state guarantees of up
to 60% loan repayment to entrepreneurs as part of measures to
provide financial support to business entities affected by the
coronavirus pandemic (2020-2021)," the Ministry said.
Due to state support, 2,628 entrepreneurs were allocated loans
totaling 499.5 million manat (293.8 million), of which 291.6
million manat ($171.5 million) were secured by the state guarantee.
In accordance with the agreements concluded by the Ministry of
Finance with the Entrepreneurship Development Fund, as well as the
fund with the mentioned banks and entrepreneurs, the ministry has
identified a guarantor for providing state guarantees for these
loans.
Since the main debt obligation has not been timely fulfilled
since the allocation of state guaranteed loans, the Ministry of
Finance, as a guarantor in total to seven banks at the expense of
the "Fund for Securing Obligations on State Debt and Guarantees,"
paid 658,200 manat ($387,176) in 2022 instead of 14 entrepreneurs,
and during the 12 months of 2023, 1.5 million manat, or $882,352
(instead of 27 entrepreneurs). Thus, during the two years of the
program, the state repaid the overdue credit debt obligations of 41
entrepreneurs in the amount of 2.1 million manat ($1.2
million).
"In accordance with the terms of state guarantees, the
Entrepreneurship Development Fund has the right to recover from
these business entities the credit debt paid to banks instead of
business entities on the basis of state guarantees," the Ministry
added.
MENAFN29122023000187011040ID1107667934
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.