ENTREPRENEURS GRANTED UP TO AZN 59 MLN. GUARANTEED BUSİNESS LOANS İN OCTOBER

As the development of entrepreneurship, specially small and medium entrepreneurship in Azerbaijan is one of the main priorities of the state's economic policy, appropriate measures are being taken to continuously improve legislation, improve the business environment, increase access to financial resources and apply other support mechanisms.

As it is known, the state provides support within the framework of special programs to minimize the impact of the coronavirus pandemic on the economy and to support entrepreneurship during this period. In particular, in order to increase access to financial resources, preferential loans are provided to entrepreneurs.

The Mortgage and Credit Guarantee Fund (MCGF) also provides support for entrepreneurship through a fast electronic mechanism to minimize the impact of the pandemic on economic activity. The amount of loans provided to entrepreneurs through the guarantee and interest subsidies mechanism is growing rapidly. Thus, in October, entrepreneurs provided loans more than AZN 58.6 million under the guarantee of the Fund. So, to date, the amount of loans provided to entrepreneurs with guarantees and interest subsidies has exceeded AZN 180 million.

The average term of guaranteed loans is 31 months, and the interest rate on loans to be repaid by borrowers at the expense of subsidies is 6.5%. These loans will create more than 2,700 new jobs through the financing of business projects. The amount of loans provided to one borrower under the guarantee of the Fund amounted to AZN 40,000 to 5 million.

It should be noted that the government will continue measures to support entrepreneurship and create a favorable business environment, not only during pandemic, but also post-pandemic period. As a result, it will support the non-oil sector of the economy in our country, stimulate the creation of new jobs in this area and create conditions for the successful implementation of the tasks set for the development of the sector as a whole.