Directions of financing agricultural development related projects and programs from the fund of State Service

 

  • Production and processing of agricultural products;
  • Improvement of amelioration of irrigated lands and their provision with amelioration and irrigation equipment;
  • Modernization and development of foodstuff sector (including warehouses);
  • Purchase of agricultural machinery and chemicals;
  • Pilot Projects of the Ministry of Agriculture of the Republic of Azerbaijan;
  • Establishment and development of private pedigree farms, implementation of artificial insemination activities in livestock breeding and other areas of agrarian sector.

Ceiling of releasing credit funds:

  • under 1000 AZN- micro-credits;
  • from 1000 to 20000 AZN – small-size credits;
  • from 20000 to 50000 AZN – medium-size credits;
  • from 50000 to 200000 AZN – big-size credits

Maturity period of credit funds: 

  • Micro-credits – up to 2 years;
  • Small and medium-size credits – up to 3 years;
  • Big-size credits – up to 5 years;

Grace period of credit funds:

  • Micro-credits – up to 12 months;
  • Small and medium-size credits – up to 18 months;
  • Big-size credits – up to 24 months;

Borrowers pay only interests for credits during the grace period;

Borrowers pay interests for received credits on the last working day of each quarter;

The principal amount of the credit is paid in equal parts on the last working day of each month starting from the next month upon the completion of grace period.

Interest rates applied to the released credit proceeds:

The State Service provides funds to the authorized credit organizations by charging 2% interest rate annually in the predefined manner;

 

The maximum level of interest rate charged by authorized credit organizations for the credit proceeds of the State Service must not exceed 7% (including 2% stipulated in this paragraph).