By the Decree of the President of the Republic of Azerbaijan dated 15 September 2017 “On a number of measures regarding state support to expand the access of entrepreneurs to financial resources”, Credit Guarantee Fund of the Republic of the Republic of Azerbaijan Open Joint Stock Company (“Fund”) was established. The Fund is aimed at increasing the access of entrepreneurs to financial resources, and hence, stimulating the entrepreneurship activity, establishing the lending system based on financial risk sharing in line with the realization of the Presidential Decree No. 1138 dated 6 December 2016 “On Approval of Strategic Roadmaps for the National Economy and Main Economic Sectors”.

In order to implement the functions assigned to the Fund and carry out the Fund’s activities In compliance with best international practices, a Working Group was approved by the President. The Working Group has been tasked to develop the suggestions on several key directions, including on the following matters, and submit them to the President of the Republic of Azerbaijan:

• suggestions on Fund’s draft charter, structure, and charter capital amount; 

taking into account the international practice:

• drafts rules for provision of guarantee for loans attracted in AZN by entrepreneurs;
• cases of and drafts rules for provision of subsidies on interests accrued on loans attracted in AZN by entrepreneurs;
• suggestions on drafts rules for implementing credit rating system and other risk management tools to reduce the risks.

We are pleased to announce that the Head of Financial Services Industry of KPMG in Russia and CIS and Head of KPMG Azerbaijan, Vugar Aliyev, was appointed as a member of this Working Group by the Decree of the President. We believe that the vast practical experience of Vugar Aliyev in financial systems and international and Azerbaijani financial sector shall contribute to the realization of this significant initiative for national economy.

We wish Vugar Aliyev success in fulfilling this important role!