BAKU, Azerbaijan, June 22
By Fidan Babayeva – Trend:
Azerbaijani farmers have been provided with loans worth more than 30 million manat ($17.6 million) by the Agrarian Credit and Development Agency under Azerbaijan’s Ministry of Agriculture since early 2021, Trend reports citing the ministry.
“Of the allocated loans, more than 17 million manat ($10 million) are concessional loans for equipment, 11 million manat ($6.47 million) - microcredits, and 2 million manat ($1.17 million) - other loans at low interest rates,” the ministry report said.
“During the reporting period, 1,195 microcredits, 685 soft loans for equipment and 68 other loans at low interest rates were issued to farmers. The allocated loans were used by 1,948 farmers,” Head of the public relations department of the Agrarian Credit and Development Agency Ruslan Zeynal said.
“According to the rules approved by the Decree of the president of Azerbaijan dated December 19, 2018, 40 percent of the cost of agricultural machinery is paid by the state, that is, farmers are provided with subsidies for the purchase of machinery in the amount of 40 percent of the cost. The buyer pays 20 percent of the cost of the equipment as a down payment, and the remaining 40 percent is provided to the farmer in the form of a soft loan or lease through authorized credit organizations,” said the report.
“Since the beginning of the year, farmers have purchased 2,442 units of machinery and equipment on credit. Of these, 16 units are combines, 504 are tractors, 94 are irrigation systems, 1,828 are other machinery and equipment,” the report reads.
State support is also provided to animal husbandry. Thus, 60 percent of the sales value of a pedigree animal is paid by the state. The entrepreneur must pay 25 percent as a down payment, and the rest of the cost of the animal is registered as a loan.
Microcredits offered to farmers are issued at 12 percent per annum for up to 3 years with a grace period of 1 year, and no collateral is required. The maximum amount for microcredits is 15,000 manat ($8,823).
Other low-interest loans (for the purchase of breeding animals and various agricultural purposes) are provided at 7 percent per annum with a grace period of up to 2 years and a period of up to 5 years.
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