Azerbaijani Mortgage and Credit Guarantee fund discloses overall loan distribution

Entrepreneurs have received credit funds in the amount of 470 million manat, or $276.47 million, under the credit guarantee mechanism of the Mortgage and Credit Guarantee Fund (MCGF), the General Director of the Fund, Elshan Karimov, said during the fund's briefing on the entrepreneurship state support tools, Azernews reports.

"So far, entrepreneurs have received credit funds for 470 million manat, or $276.47 million, under the credit guarantee mechanism of MCGF. The fund has taken the obligation to pay subsidies worth more than 56.2 million manat, or $33.06 million, under the loans, of which 40.9 million manat, or $24.06 million, has already been paid," he emphasized.

Karimov stated that as of the pledge date, over 33,500 individuals are currently employed in projects financed by loan funds, highlighting the creation of conditions for opening over 5,900 new job opportunities.

He said the competitive environment among client banks had been strengthened under the bail-in mechanism during the previous period.

"Despite the fixed maximum annual interest rate on loans of 20 percent, banks provided loans at lower interest rates. As a result, the average annual interest rate on collateralized loans in 2023 was 14.2 percent, while the interest rate paid by the subsidy amounted to 6.2 percent," he added.