New decision of the Cabinet of Ministers on entrepreneurs

With the “Rules for subsidizing interest rates on the existing loan portfolio of businesses operating in areas affected by the coronavirus (COVID-19) pandemic”, The Entrepreneurship Development Fund of the Republic of Azerbaijan has identified cases and procedures for providing subsidies for loans received by pandemic-affected businesses from credit institutions in manat, as well as accrued interest on loans to certain sectors (food).

According to the Cabinet of Ministers, paragraph 3.2 of the Rules provides for interest accrued for the first 6 months on loans (or credit lines) issued by credit institutions to food suppliers as an exception in order to create food reserves to meet the needs of human life and health in the country. And paragraph 3.3 stipulates that an interest subsidy is provided at the rate of 10 percent of the loan interest rate, and if the interest rate is less than 10 percent, the interest subsidy is provided at the interest rate of the loan.

Taking into account the importance of this issue, the Cabinet of Ministers of the Republic of Azerbaijan has adopted a decision to extend the subsidy for interest on bank loans to food suppliers and increase the interest rate on interest rate subsidies to food wheat suppliers in order to continue creating food reserves in the country.

According to the decision, the subsidy for interest on loans to food suppliers by banks will be extended from 6 to 12 months and the interest rate on interest subsidies to food wheat suppliers will be increased from 10% to 15%.