Report from NFES

The annual report of the National Fund for Entrepreneurship Support (NFES) has been distributed.

According to official information, authorized banks issued during the last financial cycle preferential loans to local businessmen in the amount of 295 million manat (+20 million manat or 7.3% to the end of 2013).

According to NFES, just last year financed the construction of 5 560 projects (+ 24.4%), that supposedly will create 12 564 new jobs. According to experts of Turan, the frequency of opening businesses at a low coefficient of efficiency is dubious. In the GDP the share of oil and oil products is about 45%, the remaining 65% is the non-oil sector, where half is the share of investment projects, and the other half is contributions from non-governmental SOFAR, as well as "non-oil" levying taxes and customs tariffs.

According to the NFES, last year on 63 large loans there was issued 223 million 588.5 thousand manat or 75.9% of all funds. The effectiveness of this is not reported.

NFES was established in 1992. Its agents in the issuance of loans are 50 banks and non-bank credit organizations. In 2014, the courts considered 11 cases of misuse of funds allocated. Bank employees were found guilty, while NFES representatives were formally innocent. --17D-

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