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New fund launched to support business
New fund launched to support business
A new mechanism to support entrepreneurs and businesses is being launched in Azerbaijan.
On December 23, President Ilham Aliyev signed a decree on ensuring the activities of the Azerbaijan Business Development Fund.
It should be noted that the fund in question was established by presidential decree in October 2021, but has not yet started operating.
With yesterday's decree, the head of state approved 2 main documents related to the Business Development Fund - the Charter of the Azerbaijan Business Development Fund and the Rules for the Use of Funds of the Azerbaijan Business Development Fund.
According to the Charter, the Business Development Fund will deal with several main issues. These are - providing financial support for the development of entrepreneurship through authorized organizations (banks, NBCIs, credit unions) and in the form of investments, providing guarantees and interest subsidies for loans taken by entrepreneurs in manat.
According to the procedure for using the Fund's funds approved by the decree, the Business Development Fund will provide preferential loans to entrepreneurs (only through banks and NBCIs), and will carry out other financing on preferential terms.
One of the main functions of the new fund is that the institution will be engaged in financing in the form of investments in areas related to the development of local businesses both within the country and abroad. In other words, if the new fund is required, it will invest with them to support local businesses.
The exact form in which the Fund will provide support to entrepreneurs will be known more precisely in the near future. Thus, the Decree instructs the Cabinet of Ministers to approve the procedure for granting preferential loans and investments to entrepreneurs within four months and inform the president.
The Fund will be managed by a Supervisory Board and a management board consisting of 5 people. Of the 5 members of the Supervisory Board, 2 will be representatives of the Ministry of Economy, and the others will be representatives of the Central Bank, the Ministry of Finance and the Oil Fund.
The Business Development Fund will begin operations immediately – the decree instructs the Ministry of Economy to prepare proposals on the staff composition and salaries of the fund’s employees within 1 month.
The new fund will begin operations with more than 1 billion manats – according to the decree – the amount of the ABIF’s statutory fund has been set at 1 billion 181 million manats.
A new mechanism to support entrepreneurs and businesses is being launched in Azerbaijan.
On December 23, President Ilham Aliyev signed a decree on ensuring the activities of the Azerbaijan Business Development Fund.
It should be noted that the fund in question was established by presidential decree in October 2021, but has not yet started operating.
With yesterday's decree, the head of state approved 2 main documents related to the Business Development Fund - the Charter of the Azerbaijan Business Development Fund and the Rules for the Use of Funds of the Azerbaijan Business Development Fund.
According to the Charter, the Business Development Fund will deal with several main issues. These are - providing financial support for the development of entrepreneurship through authorized organizations (banks, NBCIs, credit unions) and in the form of investments, providing guarantees and interest subsidies for loans taken by entrepreneurs in manat.
According to the procedure for using the Fund's funds approved by the decree, the Business Development Fund will provide preferential loans to entrepreneurs (only through banks and NBCIs), and will carry out other financing on preferential terms.
One of the main functions of the new fund is that the institution will be engaged in financing in the form of investments in areas related to the development of local businesses both within the country and abroad. In other words, if the new fund is required, it will invest with them to support local businesses.
The exact form in which the Fund will provide support to entrepreneurs will be known more precisely in the near future. Thus, the Decree instructs the Cabinet of Ministers to approve the procedure for granting preferential loans and investments to entrepreneurs within four months and inform the president.
The Fund will be managed by a Supervisory Board and a management board consisting of 5 people. Of the 5 members of the Supervisory Board, 2 will be representatives of the Ministry of Economy, and the others will be representatives of the Central Bank, the Ministry of Finance and the Oil Fund.
The Business Development Fund will begin operations immediately – the decree instructs the Ministry of Economy to prepare proposals on the staff composition and salaries of the fund’s employees within 1 month.
The new fund will begin operations with more than 1 billion manats – according to the decree – the amount of the ABIF’s statutory fund has been set at 1 billion 181 million manats.