Press releases


“Agriculture Credit Insurance Mechanism” Project
Workshop Presentation

Baku, July 13, 2010 – Azerbaijan Micro-finance Association held a seminar dedicated to the outcome of the research conducted within the “Agriculture Credit Insurance Mechanism” project.

The project aim is to analyze the current situation on insurance and agriculture in the country and to select the best policy and prepare recommendations based on learning from the best international practices on agriculture credit insurance.

At this event Executive Director of Azerbaijan Micro-finance Association, Mrs. Jhale Hajiyeva; OXFAM Project Officer, Mr. Elvin Nabiyev; AMFA Advocacy Manager, Mr. Aykhan Nasibli and AMFA Head of the Research Team, Dr. Vagif Rustamov delivered respectable presentations. 

Mr. Nabiyev gave a speech on implemented activities for supporting reconstruction of irrigation infrastructure; providing opportunities for farmers on access to market and credits, and establishing a mechanism on agriculture credit insurance.  

Mr. Nasibli stated that 450 million manats out of 2 billion loan portfolio of AMFA members are micro-loans. According to the conducted survey, half of those members provide agriculture credits, hence this sector takes 10% of the total portfolio. Being an opportunity for micro-finance institutions and insurance companies, this mechanism will have impact on improving productivity of agriculture goods in markets and initiating export targets.    

Dr. Rustamov brought the suggested mechanism structure to the attention of the seminar participants and noted that "Credit Insurance and Warranty Systems" exist in most European and Asian countries. These foundations can be established on the basis of cooperation among the state, private companies and international foundations, as well as by the state investment only. Referring to the 2nd sub-article of the article 8 - “State financial support to Small Entrepreneurship” of the Law of Azerbaijan Republic on “State Support to Small Entrepreneurship” dated June 4, 1999, it is inevitable to reflect the mechanism in the legislation based on “providing warranties to loans”.

Besides, important recommendations for establishing the foundation on the basis of stakeholder cooperation, sharing risks through exact mechanism, exemption of foundation from all taxes, organizing focus groups, defining priorities for credits and limits for insurance and warranties were part of the discussion.  

For additional information contact to:
Aykhan Nasibli, Advocacy Manager




"Building an Inclusive Financial Sector in Azerbaijan"
3rd Azerbaijan Micro-finance Conference

Baku, 26 - 27 May 2006- Azerbaijan Micro-finance Association (AMFA) hosted the 3rd Azerbaijan Micro-finance Conference at the Hyatt Conference Center. The main objective of the conference was to highlight the positive development of micro-finance, discuss sector related issues and find solutions to existing challenges.

USAID, ACDIVOCA, UNDP, as well as BP and its project implementing partners in Azerbaijan, Viator Microcredit and CredAgro Non-bank Credit Institution provided financial support to the Conference.

Micro-finance institutions who are members of AMFA currently serve over 80,000 clients and have outstanding loan portfolios of $80 million. Through 31 March 2006 they provided over USD $265 million in loans for small and medium enterprise development.

The Government of Azerbaijan, key figures of the Azerbaijan financial sector, international donors and investors, rating and audit agencies were among participants. Mr. Ali Hasanov, Deputy Prime Minister, Chairman of the Republican Commission on International Humanitarian Assistance, Mr. Elman Rustamov, Chairman of National Bank of Azerbaijan, Mr. Mikail Jabbarov, Deputy Minister of Economic Development, H.E. Jason Hyland, Charges d' Affaires, United States Embassy and Mr. James Goggin, Country Coordinator USAID Azerbaijan attended the event. Foreign guest were represented by Deutsche Bank, Microfinanza Rating agency, M-CRIL, Frontiers , MFC and Bankakademie International.

The conference was opened with remarks from AMFA Executive Director Jhale Hajiyeva. Opening remarks were continued by AMFA Chair of the BOD, Mr. Eldar Jafarov presented information about microfinance development in Azerbaijan which is recognized worldwide as an effective tool in poverty alleviation. Comparing first and second conferences, the Chairman noted that microfinance is rapidly developing in parallel with the fast growing financial sector in the country. Ms. Hajiyeva pointed out existing challenges and mentioned that drafting of the Law on Non-Bank Credit Institutions is an essential step forward in overcoming these challenges. Adoption of the Law will contribute to organized development of Microfinance Institutions.

Following speakers Mr. Ali Hasanov, Mr. Elman Rustamov , Mr. Mikail Jabbarov and H.E. Jason Hyland, Charges d' Affaires, United States Embassy appreciated the role of MFIs in poverty reduction, social and economic development of the regions and enhancement of financial sector in Azerbaijan. The speakers expressed the government's interest to support MFIs and co-operate in resolving problems.

Opening remarks were followed by discussions over legal and regulatory environment, transparency initiatives, updates from associations and best practices for NBFIs. Question and Answer sessions with rating agencies, audit companies and investors were presented on the second day of the Conference.

AMFA also introduced to the Conference participants the results of the "Benchmarking Study of Azerbaijan's microfinance sector", which the Association has carried out with support from UNDP and BP and its project implementing partners in Azerbaijan. The study stresses the importance of transparency in the microfinance sector that allows attracting more financial resources to make them further available to those in need of small credits.