BAKU, Azerbaijan, Apr. 29
By Fidan Babayeva - Trend:
Azerbaijan’s Credit Implementing Agency (CIA) NBCO, as a member of the Azerbaijan Micro-finance Association (AMFA), like many other microfinance organizations (MFIs) of the country, is actively participating in country's various economic projects with the involvement of local and foreign financial experts and partners, Chairman of the CIA Arif Aliyev told Trend.
“The organization cooperates with the MyELEN Czech portal, which provides assistance in microfinancing various projects. In order to attract private foreign investors, the CIA actively cooperates with the Admore Capital Corporation consulting company. Moreover, the organization continues to cooperate with some credit unions, providing them collection services, as well as services for forfaiting and factoring,” said the chairman.
“Our organization is actively involved in social projects, providing material assistance to low-income families. So, according to the call of the head of state, as part of the fight against the consequences of the coronavirus pandemic, we are transferring funds to the Coronavirus Response Fund. As for the advantages, the NBCO, thanks to the transparency of its activities and reporting, is always open for cooperation on a mutually beneficial basis with various local and foreign organizations. The experience of previous years shows that with fruitful cooperation it is possible to achieve the desired goals,” Aliyev said.
Touching upon the topic of restructuring problem loans, he said that a total of 25 percent of the loan portfolio to individuals has been restructured to date.
“The fact is that, according to decree of Azerbaijan’s president, bad loans subject to certain criteria and issued since 2012 were subject to the restructurization. Considering the structural changes made in 2012 in the management of the NBCO, the quality of the portfolio has significantly improved in subsequent years, and as a result, the share of bad loans has also decreased,” he said.
Credit Implementing Agency (CIA) is a non-bank credit organization. The CIA was registered by the Ministry of Justice of the Republic of Azerbaijan on September 9, 2002 and was re-registered on October 25th, 2002.
In the period from 2002 to 2012, CIA served as the agent-executor of the project on development and lending of agriculture. This project was carried out in accordance with the Credit Agreement dated October 4, 1999 between Azerbaijan and the World Bank.
The project provided short-term loans for the development of farming and small businesses in small agricultural enterprises through credit unions, groups of borrowers and individual farms.
