BTC and SCP Pipelines Community Investment Programme, Azerbaijan
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Pipeline Micro-Finance Initiative PDF Print E-mail
Monday, 26 March 2007
  FINCA Azerbaijan

fincalogoMicro-finance services are delivered by the Foundation for International Community Assistance (FINCA Azerbaijan). The original grant award to FINCA was around US $ 600,000 for loan capital and US $ 400,000 for operating expences. FINCA has commited to contribute over US $ 250,000 from revenue on the interest earned from loans to cover operating expences in the second year.

At the end of the first year of activities demand for loans was very high and there was the possibility of a liquidity crunch. To ensure that demand for loans would be met- especially the newly introduced rural loan product, CIP granted an additional US$ 300,000 in loan capital to FINCA. The new money will only be used for making loans with no overhead or admin costs coming out of the additional US $ 300,000.

This programme provides micro-finance services to local entrepreneurs all along the pipeline route in Hajigabul, Kurdamir, Ujar, Agdash, Yevlakh, Goranboy, Samukh, Ganja, Shamkir, Tovuz, Agstafa and Gazakh districts, promoting the growth and development of small businesses. The programme provides loans to local micro-enterprises for trade, agriculture, production and services. Individual loans start as low as $85 in the framework of a group loan guaranteed by interdependence of group members. Other loan products are available for individuals and small enterprises, depending on need. FINCA plans to achieve self-financing sustainability by the end of year 2 of the CIP.

FINCA’s objectives are to:
  1. Increase access to financial services for poor families, leading to enhanced employment opportunity, increased productivity and increased household incomes.
  2. Build a sustainable, self-financing, locally-managed micro-finance institution capable of providing continued financial services to poor entrepreneurs throughout Azerbaijan.
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FINCA will extend financial services across the entire BTC/SCP pipelines route through its proven Village Banking methodology. FINCA will continue to build a sustainable microfinance institution that provides services to poor entrepreneurs for years to come. In implementing this program, FINCA will build on the foundation that has been laid over the past five years of operation in Azerbaijan.

FINCA Azerbaijan’s mission is to provide financial services to the country’s poorest families so they can create their own jobs, raise household incomes, and improve their standard of living. By removing financial obstacles, the organization contributes to the rehabilitation of Azerbaijan’s economy and helps accelerate the development and growth of small business owners and micro entrepreneurs in the country.

FINCA Azerbaijan offers the following credit products along the pipeline route;
  • The Savings and Credit Group Loans (SCG) 400.000 5.000.000 Azm
  • The Rural Loan product (RLP) 700.000 - 5.000.000 Azm
  • The Small Enterprise loan (SEL) 5.000.000 - 30.000.000 Azm
FINCA Azerbaijan is an affiliate of FINCA International, a U.S.-based network of micro-finance institutions, and is licensed by the National Bank of Azerbaijan.

To get an update on the programme please refer to the “Latest News” Section.
Last Updated ( Wednesday, 04 April 2007 )
 
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