Azerbaijan sets 500 million manat loan portfolio under state guarantee scheme
The Cabinet of Ministers of the Republic of Azerbaijan set the total volume of the credit portfolio under the guarantee mechanism run by Azerbaijan Business Development Fund OJSC at 500 million manats, with the state-guaranteed share capped at 250 million manats.
Prime Minister Ali Asadov signed decree No. 826s in Baku on Nov. 3, 2026. It takes effect on the day of signing.
The portfolio applies as a pilot project until Dec. 31, 2030, to businesses operating in Azerbaijan outside the liberated territories, the city of Baku and Absheron district.
The Ministry of Economy of the Republic of Azerbaijan and the Ministry of Finance of the Republic of Azerbaijan are to settle the matters arising from the decree.
The decree implements paragraph 4.2 of the president's decree of June 9, 2026, No. 680 "On additional measures to improve the mechanisms of guarantees and interest subsidies for loans issued to business entities and on amendments to a number of decrees of the President of the Republic of Azerbaijan in this connection."
That decree transferred to the company, which operates under the Ministry of Economy, the powers of the Azerbaijan Mortgage and Credit Guarantee Fund to provide guarantees on loans taken by entrepreneurs in manats and to subsidize the interest on them. The mechanisms run as a pilot until Dec. 31, 2030, everywhere in Azerbaijan except the city of Baku and Absheron district.
Under the decree, the annual interest rate on such loans may not exceed 13%, and half of the accrued annual interest is subsidized from the state budget. Guarantees cover up to 90% of the principal in the liberated territories and up to 50% in other areas.
Guaranteed loans to a single borrower across all authorized institutions may not exceed 5 million manats, and 10 million manats for a group of related borrowers.
