Azerbaijani state to support payment of interest on business loans

What makes the current crisis unique is that it is not an economic crisis, which is mentioned in theory and textbooks, said Azerbaijan’s Minister of Economy Mikayil Jabbarov.

He made the remark in an interview with Azerbaijani television.

The minister pointed out that uncertainty puts the speed and quality of decisions made in such a period in the forefront:

“We want to see a healthy, sustainable and competitive economy. We want to see an economy that has the moral right to rely on its state, while maintaining a high social and corporate feeling in its daily activities. Over the next days and weeks, both with colleagues and with representatives of the private sector, we will present the final draft of programs aimed at eliminating the possible consequences of the coronavirus pandemic in the economy. The task that Mr. President has set for us was to present a broader economic support program not limited to 1 billion manat,” he said.

Jabbarov highlighted two new proposed programs:

“The first of these is a program to support the existing loan portfolio in the amount of 1 billion manat. As we know, a number of our entrepreneurs have bank loans. Together with other colleagues, we will determine the elements of these loans. Our main goal is business loans. Perhaps, within the framework of this program, a certain amount will be allocated to support consumer loans. We determined the main parameters for ourselves. Under this program, the state can reduce the interest rate to 10 percent when paying interest on loans that meet certain criteria. The state will support the payment of these percentages through the Entrepreneurship Development Fund,” said the minister.

“Our second program envisages provision of state support for loans and a state guarantee of up to 60 percent of the loan amount, as well as interest payments up to a certain limit. We believe that the annual percentage of such loans should not exceed 15 percent. Half of these 15 percent can be undertaken by the Entrepreneurship Development Fund.”