LOANING PROGRAMME LAUNCHED

Azat Artsakh – Nagorno Karabakh Republic [NKR]
16 May 05

The Fund for Development of Small and Medium-Size Business set up by
the NKR government is an important stimulus for business in Nagorno
Karabakh. The non-commercial organization carries out a number of
programmes, including granting privileged loans for expanding or
starting business. Last year 200 million drams was provided by
the state budget for this aim, in 2005 the sum improved to 800
million drams, of which 200 million was provided for viticulture,
cattle-farming and lease of agricultural machines each and 185 million
for industry, science and education, services. On April 15 of the
current year the executive adopted the decision N 187 determining
the directions of loaning and the amount of money for each region.
The second point of the decision instructs providing loans in the
sphere of viticulture to those farmers who will produce grapes on the
land owned by him or leased at a 25 per cent rate and who have been
registered as legal persons in conformity with the NKR legislation.
Last year the concern was expressed that the villagers should benefit
from loans (to solve this question it was necessary to solve the
problem of pledge in rural areas). The problem was partly solved. In
viticulture the government acts as guarantor for the first two years.
After two years (when the vineyard already produces harvest) the
vineyard is pledged. Besides, the guarantee of the head of the
regional administration is required in order for the programme of
loaning to involve mostly the villagers. “In the result of these and
other measures more than 60 per cent of the sum provided for business
loaning was directed at villagers,” said the executive director of
the fund for development of small and medium-size business.

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