BAKU, Azerbaijan, Apr. 8
By Fidan Babayeva – Trend:
The Azerbaijan Micro-finance Association (AMFA) has signed a new cooperation agreement with the International Finance Corporation (IFC), a member of the World Bank Group, AMFA Executive Director Jala Hajiyeva told Trend on April 8.
According to her, in accordance with the agreement, AMFA’s non-bank credit organizations (NBCOs) will increase lending for agriculture. In particular, AMFA members will be able to use CLARA IFC, a cash flow assessment tool automating risk assessment and the lending process, to provide farmers with easier access to finance.
“CLARA is an online software service designed for banks and NBCOs lending farmers. CLARA simplifies, increases and accelerates risk assessment for agricultural loans, providing the user with a number of options, such as agricultural liquidity prediction, testing, formation of flexible assumptions and a set of tools for financial analysis,” she said.
Hajiyeva noted that the work carried out in Azerbaijan in this direction is the outcome of Azerbaijan Investment Climate and Agribusiness Competitiveness project implemented by IFC with support of the Swiss State Secretariat for Economic Affairs (SECO).
"Along with creating the possibility of using this tool, IFC organizes workshops for the NBCOs which join CLARA to better use the tool. Finance and Social Innovation Consulting LLC, AMFA's subsidiary provides technical support to the NBCOs. Given that microfinance organizations in Azerbaijan need deeper knowledge of agricultural lending, CLARA will help to improve the access of micro and small agribusinesses to financing," she added.
AMFA has been functioning in Azerbaijan since 2004. Its main mission is to strengthen the potential of microfinance organizations in the country and create conditions for joint rational activities within the interests of the microfinance community.
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