Azerbaijan, Baku, Feb.22 / Trend A. Akhundov /
Azerbaijan Micro-finance Association (AMFA) and Oxfam international humanitarian organization will determine the insurance mechanism for agricultural loans in the country in autumn this year.
This was told Trend by head of Oxfam's office in Azerbaijan Shovket Alizadeh.
"At first we were talking about insurance mechanism of agricultural loans , but now it was ascertained that it is possible not to insure a loan, but to create a guarantee fund, which will enter into a contract with the bank, and will assess the farmers' property. Parallel to this, creation of a bank, which will deal with agricultural loans, is possible. Four different mechanisms are being considered at the moment, and it will be determined which one is the most suitable for Azerbaijan. This year we want to complete the review and submit the question of how this can be done for discussion with relevant agencies, "Alizadeh said.
AMFA has prepared a draft concept of creating a guarantee fund for agricultural loans and preliminary work is underway for establishment of the fund. According to this concept, the fund operating on a state level, can guarantee up to 80 percent of the entrepreneur's loan amount.
