The FINANCIAL — According to abc.az., German development will fully start direct rural financing in Azerbaijan this autumn in accordance with the Protocol signed following negotiations between the German and Azerbaijani governments on August 14-16, 2006.
The financial market sources informed Fineko/abc.az that KfW has picked 2 banks (Azerdemiryolbank and Bank Respublika) and one non-bank credit institution (Credagro) for participating in the programme.
“If the agreement with Credagro is signed and come into effect then agreements with the banks are still under discussion and to be signed not later than September. In case the programme is a success the German Bank might expand it,” the sources informed.
Currently KfW is negotiating with domestic credit institutions to be financed by EUR 2 million for rural financing in Azerbaijan. The funds designed for long period will be given directly without governmental guarantees. The partners will be able to select themselves loan-borrowers – farmers or farm-processing enterprises.
KfW plans to invest into Azeri banks’ capital to expand bank crediting of Azerbaijan agriculture. KfW will use its trust finances for that purpose.
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