TODAY.AZ / Business

Executive Credit Agency may be declared bankrupt soon

26 August 2016 [16:06] - TODAY.AZ

By Azernews


By Nigar Abbasova

Baku administrative-economic court ?2 will consider the issue on bankruptcy of Executive Credit Agency non-credit banking organization (NBCO), the official press reported.

The State service on management of agricultural projects and credits addressed to the court with relevant appeal.

 Executive Credit Agency, which is one of the credit partners of the World Bank in Azerbaijan, started its operations in 2002.

Founders of the NBCO are Association of Credits Unions of Azerbaijan, a number of credit unions and individuals.

The agency was engaged in the implementation of WB’s Agricultural Development and Credit Project for Azerbaijan and performed the function of an executive agent in 2002-2012.  The project was carried out on the basis of credit agreement dated on October 4, 1999, signed between Azerbaijan and WB.

A number of short-term credits were issued to promote development of rural productivity and incomes by enhancing the access of farmers and small and medium rural enterprises to rural business and agricultural support services, including financial, advisory and veterinary services.

Credit portfolio of the NBCO stood at 128.5 million manats ($ 79.10 million ) in 2015.

Suleyman Kalyashev, Chairman of Azerbaijan Microfinance Association (AMFA) earlier said that the situation in the market of non-banking organizations (NBCOs) is still indefinite, mentioning that the recent reduction of a number of banks in the country has also negatively affected operations of NBCOs operating in the country.

Commenting on the current situation in the market, he said that a number of small NBCOs operating in the country may go out of business in the short run.

Currently, more than 150 NBCOs are operating in Azerbaijan. Credit portfolio of NBCOs as for July 2016 stood at 548.9 manats ($ 338.6), which is 7.06 percent lesser than the index fixed in the same period of 2015. The volume of non-performing loans made 8.4 per cent of the overall loan portfolio, according to the CBA.

The official exchange rate of the US dollar and euro to Azerbaijani manat was set at 1.6280 manats and 1.8374 manats, respectively, on August 26.

URL: http://www.today.az/news/business/153686.html

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