Subsidies will be provided to wheat suppliers in Azerbaijan, Trend reports, citing the Cabinet of Ministers.
The Cabinet has amended the resolution “On a number of measures to provide state support to loans to business entities to reduce the negative impact of the coronavirus pandemic (COVID-19) on the country’s economy”.
According to the amendments, in order to create food reserves in the country to meet the needs necessary for human life and health, as an exception, subsidies will be provided to suppliers of wheat for interest accrued within 24 months on loans (or credit lines) provided by credit organizations.
The interest subsidy for food wheat suppliers will be provided on loans from March 2020 for paid or unpaid interest for a period not exceeding 24 months.
Preferential loans provided at the expense of financial institutions and funds established by the state are an exception. The interest subsidy is provided in the amount of 50 percent of the annual interest rate on the loan.
Loans issued under the state guarantee must meet the following requirements:
– the loan amount for each business entity should not exceed 3 million manat ($1.7 million);
– the annual interest rate of the loan should not exceed 15 percent;
– the term for which the loan is issued should not exceed three years;
– the grace period for the loan should not exceed 12 months;
– the ratio of the guarantee amount to the loan amount should not exceed 60 percent.
Source: TREND News Agency