Washington D.C. – The United States-Azerbaijan Chamber of Commerce hosted a webinar featuring Mr. Mirza Aliyev, Chairman of the Agency for Agro Credits and Development in Azerbaijan. The conference call was joined by American and Azerbaijani business representatives, government agencies, including U.S. Commercial Services and Small Business Administration.
Mr. Aliyev briefed the webinar participants about the strategy of the ministry, informing them about the key pillars that the agency builds its work on, namely ag-analytics, ag-solutions, ag-knowledge, ag-assistance, and ag-trading.
The presentation covered a wide range of issues pertaining to agriculture financing. According to Mr. Aliyev, the government supports farmers by providing them with access to finance, including subsidies to purchase input materials, soft loans and other forms of financing for the purchase of ag machinery. Interest rates for ag machinery are fully subsidized by the Government which enables farmers to increase productivity and profit.
The government’s agriculture subsidies are mainly channeled to crops, livestock, and ag production facilities. The government of Azerbaijan provides different tax exemptions for the agricultural sector, said Mr. Aliyev. To enable the business environment and stimulate agricultural activities, the government provides 40% grants of the total amount for agriculture machinery, and 60% grants of the total amount for breeding animals. Moreover, 40% loans with 0% interest rate for agriculture machinery and 15% loans with up to 7% interest rate for animal breeding are available for farmers. While buying either breeding animal or ag machinery farmers have to make down payments, 25% and 20% respectively.
Source: USACC
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