“Credit Implementing Agency”

LLC NBCO

“Credit Implementing Agency”

LLC NBCO

Baku, Azerbaijan @ 2013Baku, Azerbaijan @ 2013

AzerbaijanTerritory 

86.6 thousand km2 (12% forests, 1.7% water basin, 54.9% suitable land, including 31.1 % pastures and hayfields,31.4% other lands).Country 44° and52° east longitude,38° and 42° in north latitude, Baku at the 40° parallel.  The distance from Baku to north pole is 5550 km, the distance till equator is 4440 km.   The large lakes, km2 Sarisu - 67.0 Aghgol - 56.2 Aghzibirchala - 37.0 Mehman - 35.0 Boyukshor - 9.2 Hajigabul - 8.4  The largest lake in the world -Caspian Sea are - 400000 km2, depth-1025 m.The highest peakBazarduzu - 4466 m.  

Neighbors  

State borders: From south- Iran 765 km, Turkey 15 km.from north – Russia 390 km.From north-west – Georgia 480 km.From west – Armenia 1007 km   The length of the widest area of the Caspian Sea in Azerbaijani sector is 456 km. Large islands km2 Pirallahi - 14.4 Çilov - 11.5 Khara-Zira - 3.5 Boyuk-Zira - 1.4 

The largest rivers kmKur - 1515Araz - 1072 Alazan (Ganikh) - 413İori (Gabırrı) - 389 Samur - 216 Tartar - 200 

AzerbaijanIndustry

• Oil and gas industry• Chemistry and oil-chemistry• construction materials industry

etc.

Agriculture• Husbandry• Cattle-breeding • Poultry • Fishing etc.

A Brief History of “Credit Implementing Agency” LLC NBCO

“Credit Implementing Agency” (CIA) is organized in Azerbaijan in order to perform the component of Financing of Rural Lands of the Project “Agriculture Development and Crediting” by the “G&G Consulting” company of the Republic of Turkey in May, 2002.

CIA has been registered in the Ministry of Justice of the Republic of Azerbaijan in September 9, 2002 and received license from the National Bank of the Republic of Azerbaijan in October 25, 2002.

The founder of CIA was “Azerbaijan Credit Unions Association” Public Union from the date of August 03, 2005 after termination of the contract concluded between “G&G Consulting” company and the Government of Azerbaijan and CIA was re-registered at the Ministry of Justice of the Republic of Azerbaijan in September 22, 2005.

From the date of February 15, 2013, the foundation of “Credit Implementing Agency” consists of 1 Public Union (Azerbaijan Credit unions Association), 11 leading Credit Unions and 12 physical

persons that are members of the collective.

Since its establishment, CIA is cooperating with World Bank. Joined to the IFAD projects since 2013.

Our Aim

Main aim of CIA activity is to give micro-credits to the farmers in

order to development the activities of small and medium

entrepreneurship by Borrower groups (BG) and Credit Unions (CU)

that called as local financial intermediaries in the 6 regions of

Azerbaijan – Nakhchivan AR, Masalli, Sheki, Ganja, Beylagan and

Khachmaz region. At present, CIA is implementing to provide micr-

credits to the producers of agricultural products more than 1500

villages of 33 regions of the Republic.

The Strategic Plan of CIA is to support the development of the

agricultural sector of the Republic, and to achieve the

establishment of specialized and sustainable Credit Unions

institute

Borrower groups (BG)- is a group that consists of 5-10 physical

persons who living in the same village, engaging in entrepreneurial

activity and taking liability according to joint warranty.

Credit Union (CU)- is a non-bank credit organization that created

to their mutual crediting by focusing free cash of physical persons

that combining voluntary and/or legal persons that is the subject of

small entrepreneurship acting under “On Credit Unions” Law of the

Republic of Azerbaijan, and under the common interest.

Our Strategy:

is to improve the services provided to customers and

required by them by using modern technologies and

trainings and to create extensive branch network and

strong client base

Our mission:

is to create conditions for the development of farmers

operating in the regions of the Republic of Azerbaijan,

to achieve the growth of agriculture sector by

providing credit in transparent and the most favorable

terms.

CIA is implementing to give credits by the maximum reduction of expenses belong to the peasant and by the assessment of applications on granting credits, its clearance and its providing by the simplest methods.

Giving credits to BG Giving credits to CU Giving Consumer loans Crediting of individual farms

The credits are given to BG in the amount of 500-3000 manats with 15-26% for 24months

The credits are given to CU up to the amount of 150 000 manats being annual 10% for 36 months (percent can be changed according to the latest six month auction rate of National Bank) .

Consumer credits are given up to 15 000 manats with 25-30 % for 24 months, small and medium-sized business credits are given up to 25 000 manats with 25% for 12-36 months

The services

  2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TOTAL

Credits given to BG

46,313 1,709,170 4,209,305 7,436,580 7,709,600 4,633,200 2,757,700 3,084,700 3,174,600 2,295,300 3,792,500 40,848,968

Credits given to CU

0 43,513 1,088,307 3,479,146 4,682,921 6,711,615 7,168,190 10,509,285 13,696,836 14,512,430 13,798,851 75,691,094

Consumer loans 0 0 0 0 0 0 961,768 919,180 405,075 543,150 626,850 3,456,023

TOTAL 46,313 1,752,683 5,297,612 10,915,726 12,392,521 11,344,815 10,887,658 14,513,165 17,276,511 17,350,880 18,218,201 119,996,085

Specific weight of BG loans

100.0% 97.5% 79.5% 68.1% 62.2% 40.8% 25.3% 21.3% 18.4% 13.2% 20.8% 34.0%

Specific weight of CU loans

0.0% 2.5% 20.5% 31.9% 37.8% 59.2% 65.8% 72.4% 79.3% 83.6% 75.7% 63.1%

Specific weight of Consumer loans 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8.8% 6.3% 2.3% 3.1% 3.4% 2.9%

Information on credit amounts given by CIA during 2002-2012 (thousand)

Information on credit amounts that given by CIA during 2002-2012 (thousand)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

13,000,000

14,000,000

15,000,000

16,000,000

THE YEARS THAT CREDITS GIVING

Credits given to BGCredits given to Cu

Consumer loans

YEARS 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total

Credits given to CU

0 43,513 1,088,307 3,479,146 4,682,921 6,711,615 7,168,190 10,509,285 13,696,836 14,512,430 13,798,851 75.691.094

Number of CU 0 2 19 30 32 33 26 33 43 45 46 73

Information on credit that given to Credit Unions by CIA during 2002-2012 (thousand)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Cəmi0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

043,513 1,088,307

3,479,1464,682,921

6,711,6157,168,190

10,509,285

13,696,836

14,512,430

13,798,851

Information on credit that given to Credit Unions by CIA during 2002-2012 (thousand)

Direct buyer of credit resourcesAmount of granted credit, (thousand)

Number of credit

Average credit amount for 1 debtor

Borrower Groups 40,848,968 80,870 505

Credit Unions 75,691,094 34,759 2,178

Physical persons (Consumer loans)

3,456,023 682 5,067

TOTAL 119,996.075 116,311.00 7,750