President Ilham Aliyev signed a decree “On Strengthening of Necessary State Support for Broadening Access to Financial Resources of Entrepreneurs Operating in the Liberated Territories”. The document provides for the provision of state guarantee totaling 450 million manats or 90% of the allocated loans in these territories.

Loans guaranteed by the state guarantee should meet the following requirements:

– total amount of state-guaranteed loans for one economic entity on all the authorized credit institutions should not exceed 5 million manats

– annual interest rate on a loan should not exceed 15%;

– term of the loan should not exceed seven years;

– grace period on a loan should not exceed half of the loan term, up to 36 months;

– ratio of the state guarantee provided per loan to the size of the loan should not exceed 90%.

Besides, business entities that will implement projects in the liberated territories will receive an interest subsidy from the government. This measure of support will be expressed in the form of non-refundable aid provided by the government for repayment of a part of the interest accrued on manat loans received by business entities from authorized lending institutions. In this case, the interest subsidy is provided for 10 percentage points of the annual interest rate of the loan

Source: Turan News Agency