BAKU, Azerbaijan, April 5. Azerbaijan's Entrepreneurship Development Fund, under the Ministry of Economy, has issued soft loans totaling 43.1 million manat ($25.35 million) to finance 1,065 investment projects in the first quarter of the current year, Chairman of the Fund's Board Osman Khaliyev told Trend in an exclusive interview.
The chairman highlighted that the fund's principal goal is to provide financial assistance to enterprises, develop collaboration between the state and entrepreneurs, and create a conducive climate for reciprocal engagement.
"Currently, the Fund works with 21 banks, 9 non-bank credit organizations, and 10 credit unions around the country to provide accessible financial support to business enterprises. During the first three months of the year, 1065 projects obtained soft loans worth 43.1 million manat ($25.35 million) from recognized credit companies," he said.
Khaliyev stressed the need to work with the private sector to establish financial instruments that promote entrepreneurship, such as soft loans, guarantees, subsidies, and equipment loans. These techniques are applied by authorized credit institutions.
"Soft loans are granted for specific projects that coincide with the priority areas identified for 2024, with proposal studies conducted by both credit firms and the fund. Fund allocation decisions take into account the project's economic benefit as well as its development potential. Aside from relationships with lending firms, the fund also engages with entrepreneur associations and clubs, conducting frequent meetings with their members," Khaliyev added.
In 2023, the Azerbaijan Entrepreneurship Development Fund granted soft loans of 193.8 million manat, or $113.9 million, to fund 3,276 investment projects.
