In Azerbaijan, some people are cautious about taking loans due to interest rates.
Today's topic of Oxu.Az's "What does the law say?" rubric concerns loan interest. Who will have their interest paid by the state?
According to the new decision, the Ministry of Agriculture is starting to apply a new support mechanism for farmers engaged in annual sowing. The support tool will encourage the direction of private sector funds into the agricultural sector.
By decision of the Agrarian Subsidy Council, the portion of the annual interest rate on agricultural loans provided by banks to farmers, financed from the state budget, has been set at up to 19 percent.
These loans will be given to farmers growing rice, corn, millet, sorghum, other grains and legumes (wheat, barley, rye, spelt, buckwheat, peas, beans, lentils, etc.), as well as sunflowers, potatoes, vegetables and melons, and industrial crops - cotton, sugar beet, tobacco, and soybeans.
The main advantage of the new mechanism is that interest on loans taken for the purchase of agricultural means of production, including mineral fertilizers, biohumus, certified seeds, and pesticides, as well as for the use of agrotechnical services, and with a maturity not exceeding one year, will be covered by the Agrarian Credit and Development Agency (AKIA). At the end of the term, farmers will only repay the principal amount of the loan to the bank.
