Azerbaijan’s PASHA Holding has donated 5 million manat ($2.9 million) to Agrarian Credit and Development Agency (AKIA) to provide preferential microloans to farmers, Trend reports.
Thus, the holding showed solidarity with the steps taken by the president of Azerbaijan to support the local agricultural producers both during the coronavirus pandemic and in the subsequent period. According to the president’s decree dated April 14, 2020, 30 million manat ($17.6 million) was allocated for issuing microloans to the agricultural producers in the pandemic conditions and afterwards.
The allocated funds will be used to provide microloans in the amount of up to 15,000 manat ($8,800) to the farmers. Three-year soft loans issued for 12 months are designed to create and expand horticulture, agriculture, animal husbandry and other forms of family farming.
It’s expected that about 1,000 farming households in rural areas will receive funds donated by the holding. The loans will be provided to the farmers through authorized credit organizations of AKIA.
“According to the agreement we signed, the funds allocated to us by PASHA Holding will be provided to farmers only through our authorized credit organizations, which are beyond the holding’s ownership. This agreement is the support by a large holding not only for farmers, but also for the banking sector. Since the funds are revolving, that is, repayable, the farming households will receive more benefits than planned at the initial stage,” said AKIA Chairman Mirza Aliyev.
“Agriculture is one of the most important areas of economic development in Azerbaijan and it is always on the agenda of our organization. That’s why our holding took such a deliberate step of social responsibility. We are confident that other large holdings and companies in the country will also respond to a call for support small farms,” said CEO of PASHA Holding Jalal Gasimov.
PASHA Holding was established in 2006. Through its subsidiaries, it invests in banking, insurance, construction, the property development and tourism sectors.
Agrarian Credit and Development Agency under the Ministry of Agriculture was established in accordance with the order of the President of Azerbaijan on measures to improve management in the agrarian division. It is the executive body that ensures the involvement and use of loans for state support of individuals and legal entities engaged in entrepreneurial activity in the agrarian sector.