Decree 413 and Rules

DECREE OF THE PRESIDENT OF THE REPUBLIC OF AZERBAIJAN
 
In the country, important work has been done in order to improve the supply of agricultural products with equipment, agrotechnical services have been provided to farmers on preferential terms, and measures have been taken to improve the breed composition of livestock. Over the past 14 years, "Agroleasing" Open Joint-Stock Company has brought more than 42,000 pieces of equipment and more than 35,000 breeding animals to the country and leased or sold them to producers at a discount. Currently, there is a need to renew the equipment that is reaching the end of its service life, to expand the possibilities of applying innovative technologies to achieve high productivity goals, to increase the competition and quality in the provision of agrotechnical services, and to improve the state support mechanism for agriculture.
In order to ensure competitive activity in the market of agricultural production equipment, improve the mechanism of preferential sale of equipment and breeding animals through leasing, expand private agrotechnical services, and effectively use budget funds directed to concessions by applying the principle of public-private partnership and in keeping with Item 32, Article 109 of the Constitution of the Republic of Azerbaijan, I resolve:
  1. The "Rule for the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan" should be approved (attached).
  2. In accordance with the Regulation approved by part 1 of this Decree, concessions granted at the expense of the state budget are granted to all legal and natural persons engaged in the trade of agricultural means of production (agricultural machinery, technological equipment, sets and equipment of irrigation systems, breeding animals) be applied to their sales (through leasing or credit). [1]
  3. To organize the evaluation of the property at the disposal of the "Agroleasing" Open Joint-Stock Company (hereinafter - the Company) subordinated to the Ministry of Agriculture of the Republic of Azerbaijan with the involvement of an international reputable auditing organization and, based on the result of the evaluation, to submit information about the new balance sheet of the Company to the State Committee of Real Estate Issues of the Republic of Azerbaijan.
  4. The rebate and interest obligations incurred during the lease sale of existing agricultural production equipment, including machinery and breeding animals intended to be purchased by the Company in 2019, should be paid at the expense of the Company, the funds collected from the existing residual portfolio (maintenance and operation of the Company with the exception of the amount of funds required for its provision) to be transferred to the appropriate account of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan (hereinafter - the Agency) for the purpose of paying benefits determined in accordance with the Regulation approved by Part 1 of this Decree.
  5. In accordance with the "II State Program of Privatization of State Property in the Republic of Azerbaijan" approved by Decree No. 383 of the President of the Republic of Azerbaijan dated August 10, 2000, the State Committee for Property Issues of the Republic of Azerbaijan, in the order agreed with the Ministry of Agriculture of the Republic of Azerbaijan, of the Company's agrotechnical service areas (district branches) to carry out privatization.
  6. The Ministry of Finance of the Republic of Azerbaijan should ensure that the required funds are provided in the state budget every year in accordance with the Regulation approved by Part 1 of this Decree regarding the application of concessions to agricultural means of production.
  7. Ministry of Agriculture of the Republic of Azerbaijan:
7.1. taking into account the possibilities of applying innovative technologies in agriculture, to submit proposals to the President of the Republic of Azerbaijan within three months regarding the techniques to be applied in the agrarian field;
7.2. by involving an international reputable consulting company, prepare the concept of state support to the agricultural sector, the draft of the procedure for subsidizing agricultural production and giving concessions at the expense of the state budget and submit it to the President of the Republic of Azerbaijan within three months;
7.3. to take relevant measures related to the implementation of parts 2-4 of this Decree and inform the President of the Republic of Azerbaijan about the work done, as well as the results of the Agency's and the Society's activities within one year.
  1. Cabinet of Ministers of the Republic of Azerbaijan:
8.1. Based on the proposals of the Ministry of Agriculture of the Republic of Azerbaijan, the Ministry of Taxes of the Republic of Azerbaijan and the State Customs Committee of the Republic of Azerbaijan, proposals on the exemption from a value-added tax of the production of agricultural machinery, including the production, sale and import of spare parts for agricultural machinery, shall be submitted to the President of the Republic of Azerbaijan within two months. let him;
8.2. prepare and submit to the President of the Republic of Azerbaijan within three months the proposals on the adaptation of the acts of the President of the Republic of Azerbaijan to this Decree;
8.3. Ensure that the normative legal acts of the Cabinet of Ministers of the Republic of Azerbaijan are adapted to this Decree within three months and inform the President of the Republic of Azerbaijan;
8.4. monitor the adaptation of normative legal acts of central executive authorities to this Decree and inform the President of the Republic of Azerbaijan about its implementation within five months;8.5.
The Ministry of Justice of the Republic of Azerbaijan should ensure that the normative legal acts and acts of a normative nature of the central executive authorities are adapted to this Decree and inform the Cabinet of Ministers of the Republic of Azerbaijan.
 
Ilham ALIYEV,
President of the Republic of Azerbaijan
 
Baku city, December 19 2018
   № 413
 
 
 
 
Approved under Decree 413 dated December 19
2018 of the President of the Republic of Azerbaijan
 
Utilization of the funds owned by the Agrarian Credit and Development Agency under the
Ministry of Agriculture of the Republic of Azerbaijan
 
RULE
 
  1. General provisions
1.1. This Regulation defines the mechanism and conditions for using the funds of the Agrarian Credit and Development Agency (hereinafter - the Agency) under the Ministry of Agriculture of the Republic of Azerbaijan.
1.2. The funds of the Agency are directed to the financing of the development projects of the agrarian unit and the concessions given to the means of agricultural production defined in the 2nd part of this Regulation. The means of agricultural production include agricultural machinery, technological equipment, sets and equipment of irrigation systems, and breeding animals.
1.3. Delivery of concessional financing, including loans, leasing funds, guarantees, and concessions to business entities operating in the agricultural sector and family peasant farms (hereinafter - business entities) through authorized banks, non-bank credit and leasing organizations (hereinafter - authorized credit organizations) carried out on its own behalf and wholly or partly at its own risk. [2]
1.3-1. Risks on the non-performing part of microloans granted by applying the guarantee in accordance with clause 5.7 of this Regulation are partially covered by the Agency. The non-performing part of microloans (non-performing loan) means the part (amount) of the loan principal payments delayed by more than 90 (ninety) calendar days from the date specified in the contract. [3]
1.4. The Ministry of Agriculture of the Republic of Azerbaijan creates a Competition Commission (hereinafter - the Competition Commission) on the use of Agency funds. The Competition Commission selects authorized credit institutions taking into account the regional structure and regional scope. In addition to the relevant state institutions, representatives of non-governmental organizations can also be included in the composition of the Competition Commission.
1.5. The Regulation on the Competition Commission and the selection criteria of credit organizations are approved by the Ministry of Agriculture of the Republic of Azerbaijan.
1.6. Credit funds returned to the account of the Agency by authorized credit institutions, as well as other incomes (except for the funds provided for in clauses 5.8 and 5.9 of this Regulation) are re-directed to the purposes provided for in clause 1.2 of this Regulation.
1.7. In order to ensure the efficient distribution of funds among authorized credit organizations, the Central Bank of the Republic of Azerbaijan submits relevant information to the Agency on the financial and statistical indicators of authorized credit organizations by February 1 of each year. [4]
 
  1. Utilization purposes of Agency funds
 
2.1. The funds of the agency are used in the following directions:
2.1.1. financing of projects related to the improvement of the processes of production, processing, storage and sale of agricultural products;
2.1.2. financing of innovative projects related to agrarian development of regions;
2.1.3. financing of projects related to the improvement of the supply of agricultural means of production, as well as their sale, leasing and crediting on preferential terms; [5]
2.1.4. financing of projects in the field of development of animal husbandry by applying public-private partnerships;
2.1.5. Financing of pilot projects of the Ministry of Agriculture of the Republic of Azerbaijan;
2.1.6. financing of the guarantee in the manner determined by this Regulation. [6] 
  1. Credit extension through authorized lending institutions
 
3.1. Terms of use of funds are regulated according to the agreement concluded between authorized credit organizations and the Agency. The maximum volume (limit) of the credit line determined for each authorized credit organization is 5,000,000 (five million) AZN. The specific volume of the credit line (funds under the limit) is determined by the Competition Commission based on the order of the authorized credit organization. During the period of use of funds under the limit, on the basis of the application of authorized credit organizations, the Competition Commission may determine additional funds under the limit for the purpose of financing the investment projects of business entities. [7]
3.2. The balance of the total amount of funds attracted by the authorized banks from the Agency can be up to 100 percent of their total capital, and of the authorized capital of non-bank credit organizations. For non-bank credit organizations, the allocation of funds in excess of the authorized capital can be carried out on the basis of a bank guarantee. [8]
3.3. Based on the application of authorized credit institutions, if less than 80 percent of the funds determined at the beginning of the year are used up to the limit until 3 (three) months before the end of the financial year, and the limits opened later, based on the application of authorized credit organizations, by the end of the year, the unused part of the funds will be allocated from the date of determining the limit. 0.02 percent fine is calculated for each calendar day from October 1 or until December 31, respectively, and the unused part of the limit and (or) not intended to be used according to the information of authorized credit institutions is canceled by the decision of the Competition Commission is made and (or) allocated to other authorized credit institutions for that financial year. Authorized credit organizations can apply to the Agency for reducing or canceling the limit. [9]
3.3-1. The limit allocated to one authorized credit institution in one year cannot exceed 30 percent of the total limit to be given to authorized credit institutions for that year. [10]
3.4. Authorized credit organizations must pay the used principal and accrued interest to the Agency no later than the first 5 (five) working days of the following month for each month in accordance with the contract they have concluded with the Agency. [11]
3.5. Obligations of authorized credit institutions before the Agency do not depend on their relations with business entities. Regardless of whether the business subjects return the loans, authorized credit organizations must fulfill their obligations to the Agency in accordance with the terms of the contract. Authorized credit organizations shall pay a fine of 0.1 percent of the non-transferred funds, but not more than 10 percent of the remaining amount of the loan, for each day of delay in their obligations to the Agency. If authorized credit organizations do not fulfill their obligations within 1 (one) month, the Agency takes appropriate measures to return its funds. [12]
3.6. When the license of the authorized credit institution is revoked, when the credit institution is forced to liquidate or goes bankrupt, upon the request of the Agency, the judicial body supervising the liquidator transfers the loan portfolio financed by the funds of the Agency from the credit institution subject to liquidation to another authorized credit organization. At this time, the rights on the property mortgaged or pledged in favor of the credit institution as security for that loan portfolio are transferred to the new authorized credit institution.
3.7. When the loan portfolio is transferred to another relevant credit institution, it can be restructured once by extending the term of the loan up to one year in accordance with the procedure determined by the Competition Commission based on the application of the authorized credit institution. [13] 
  1. Allocation and utilization of funds in connection with preferential financing for entrepreneurship entities
    [14]
 
  1. 4.1. Business entities apply officially to the authorized credit organization for the allocation of loans, leasing funds and concessions. The authorized credit organization registers the applications and provides the business entity with a relevant document confirming the registration of the application. This application is considered in the authorized credit organizations, the application is analyzed based on the requirements and evaluation criteria for the development of projects determined by the Ministry of Agriculture of the Republic of Azerbaijan, and a decision is made whether the loan, leasing funds or concession can be granted no later than 15 working days from the date of registration of the application, or a reasoned refusal letter is sent (presented) to entrepreneurs. [15]
  2. 4.2. The authorized credit institution submits the required information and documents to the Agency regarding the application it has positively assessed. The Agency carries out a full and comprehensive examination of the application within 15 working days and requests additional information and documents if necessary for the examination.
  3. 4.3. Based on the results of the examination, the agency officially informs the authorized credit organization about its decision to grant or reject the application.
  4. 4.4. After the decision to grant the application is made, the authorized credit organization sends an order to the Agency on the allocation of funds. The agency ensures the transfer of funds to the account of the authorized credit organization within 3 (three) banking days after receiving the order. The authorized credit institution shall transfer the received funds within 1 (one) banking day to the account of the business entity and inform the Agency about it. 1 (one) banking day after the funds are deposited in the correspondent account, the authorized credit organization provides the business entity with a notification confirming the right to use the funds. From that date, the business entity uses the funds. The loan provided to the entrepreneurial subject (except for concessional loans provided for in subsection 5.1.5 of this Regulation and tranches of the loan provided for projects financed in stages) may be re-allocated to it at the expense of the Agency only after the full amount has been returned. [16]
  5. 4.4-1. Entrepreneurial subjects must pay the interest debts on the concessional loans they receive every month in accordance with the terms of the contract. The principal debt is paid in equal installments starting from the next month during the remaining period after the end of the grace period. If the business subjects pay the interest or the principal before the due date, the part of the interest or the principal must be transferred to the account of the Agency by the authorized credit institution no later than 5 (five) working days. If authorized credit institutions delay the transfer of those funds to the Agency's account, they must pay a fine in accordance with paragraph 3.5 of this Regulation. If the transfer of funds is delayed for more than 15 (fifteen) business days, the Competition Commission may stop allocating new funds to the authorized credit organization or remove it from the list of authorized credit organizations. [17]
  6. 4.4-2. The Agency may compare the date of payment of the principal debt and interest to the authorized credit organization by the business entities with the date of transfer to the Agency by the authorized credit organization or apply to the Central Bank of the Republic of Azerbaijan for this. When such a request is received, the Central Bank of the Republic of Azerbaijan informs the Agency about it if it finds inconsistencies in the transfers by the authorized credit institution during the inspection.
  7. 4.5. Authorized credit institutions are responsible to the Agency, regardless of whether the business entities fulfill their obligations or not.
 
  1. Limits, terms and interest rates of loans and leases [18] 
5.1. Entrepreneurial subjects may be granted concessional loans and leasing funds at the expense of the Agency in the following limits: [19]
5.1.1. up to 15,000 AZN - microloans; [20]
5.1.2. from 15,001 AZN to 30,000 AZN - small loans; [21]
5.1.3. from AZN 30,001 to AZN 100,000 - medium-sized loans;
5.1.4. from 100,001 to 200,000 AZN - large loans;
5.1.5. Up to 1,000,000 AZN - loans and leasing funds for the purchase of agricultural production equipment.
5.2. The terms of concessional loans are determined as follows:
5.2.1. for microloans - up to 3 years; [22]
5.2.2. for small and medium loans - up to 3 years;
5.2.3. for large loans - up to 5 years.
5.3. The grace period for loans is determined as follows:
5.3.1. for microloans - up to 12 months;
5.3.2. for small and medium loans - up to 18 months;
5.3.3. for large loans - up to 24 months.
5.3-1. When concessional loans provided for in subsections 5.1.1‒5.1.4 of this Regulation are granted to business entities for the purpose of building new gardens at the expense of the Agency, the term of those concessional loans is up to 6 years, and the concession period for loans is up to 36 months. [23]
5.4. The term of credit and leasing is 3 years for breeding animals bought on preferential terms, 5 years for other agricultural production means. The grace period does not apply to loans and leases for agricultural means of production for which a grace period is applied. [24]
5.5. During the grace period, the business entity pays only the interest debt and does not make any payments on the principal debt.
5.6. Entrepreneurial entities pay interest and principal on purchased loans and leases in equal installments on the first working day of each month, starting from the following month, in accordance with the loan and leasing agreement, after the end of the grace period (from the date of purchase for the agricultural means of production for which the grace is applied). [25]
5.7. The Agency provides the funds provided for in this Regulation to authorized credit institutions by applying 2.5% per annum for unsecured microcredits or other concessional loans, and an additional 0.5% for secured microcredits. The maximum annual interest rate applied by authorized credit organizations to the Agency's loan funds (including the interest applied by the Agency) is 12 percent for microloans, 7 percent for other concessional loans, all loans to agricultural cooperatives and for type loans, it should not exceed 5 percent. [26]
5.8. 1/2 of the amount of interest paid to the account of the Agency for the use of credit and leasing funds granted through authorized credit organizations, and 3/5 of the amount of interest paid to the account of the Agency for guaranteed microloans is the non-performing part of those loans and the special account opened by the Agency for the purpose of meeting the demands on the guarantee stored in the account. These funds are directed to take measures to make payments on overdue loans, as well as to write off assets considered hopeless according to the criteria set by the Central Bank of the Republic of Azerbaijan, and to pay claims on guarantees, in agreement with the Ministry of Agriculture of the Republic of Azerbaijan. [27]
5.9. With the exception of the part of the interest paid to the account of the Agency for the use of credit and leasing funds provided through the authorized credit organizations, the remaining amount kept in a special account shall be used to strengthen the social protection of the employees of the Ministry of Agriculture of the Republic of Azerbaijan, and to supplement the amount not exceeding 2 times of the monthly salary and giving awards, paying for the work of employees involved in out-of-state positions, strengthening the material and technical base of the Agency, organizing cooperation with credit organizations, conducting information, advertising and marketing work, paying for consulting services and other services provided for the efficient operation of the Agency, as well as rural is spent on increasing the scientific and technical potential in the field of management of agricultural projects and loans. [28]
 
5-1. Microcredit security provision
 
5-1.1. The amount of guarantee for microloans issued by the agency to authorized credit organizations is calculated as follows:
5-1.1.1. when the amount of the non-performing loan is up to 12 percent of the remaining microcredit portfolio:
TM = QQ - (QM x 6%), where:
TM – amount of guarantee;
GIK - the part (amount) of principal debt payments on secured microloans delayed for more than 90 (ninety) calendar days;
QM – the remaining amount of the main credit debt for guaranteed microloans (residual portfolio);
5-1.1.2. when the amount of the non-performing loan is 12 percent or more of the remaining microcredit portfolio:
TM = QM x 6%, where:
TM – amount of guarantee;
QM – the remaining amount of the main credit debt on secured microloans (residual portfolio).
5-1.2. Within 10 (ten) banking days from the day when the authorized credit organization submits the documents confirming the amount of the non-performing loan on guaranteed microcredits to the Agency, the Agency pays back to the authorized credit organization the funds calculated in accordance with clause 5-1.1 of this Rule.
5-1.3. After the payment by the Agency, when the borrower makes a payment for the debt obligations included in the non-performing loan portfolio, the authorized credit institution shall transfer part of the funds related to the risk of the Agency in a proportional manner (until the Agency's microcredit guarantee losses are recovered) within 10 (ten) banking days from the day of payment. Returns to the agency. [29]
 
  1. Financing the privileges applicable to the sale and leasing of agricultural production means
 
6.1. Financing of sale, credit and leasing of agricultural machinery, technological equipment, irrigation system sets and equipment (hereinafter - machinery) on preferential terms is carried out in the following manner: [30]
6.1.1. the initial payment required to be paid by the buyers for the equipment is determined in the amount of at least 20 percent of the sales value determined as a result of the evaluation of the equipment;
6.1.2. a discount of 40 percent of the customs value of the imported equipment, and of the locally produced equipment determined as a result of the assessment, is applied, and the amount of this discount is paid through the authorized credit organizations from the state budget of the Republic of Azerbaijan for this purpose from the funds allocated to the Agency;
6.1.3. authorized credit organizations finance the remaining part of the sales value of the equipment determined as a result of the evaluation through credit or leasing under the conditions specified by this Regulation. The interest applied to the financing amount in accordance with clause 5.7 of this Regulation is paid from the state budget. [31]
6.2. Financing of the sale, credit and leasing of breeding animals on preferential terms is carried out in the following manner:
6.2.1. the initial payment required to be paid by the buyers for the corresponding breeding animal is determined in the amount of at least 25 percent of the sale value of the breeding animal determined as a result of the evaluation;
6.2.2. a discount of 60 percent of the customs value of the imported breeding animal, and of the value of domestically bred breeding animals determined as a result of the evaluation, is applied, and this discount amount is paid through authorized credit organizations from the state budget of the Republic of Azerbaijan for this purpose from the funds allocated to the Agency;
6.2.3. authorized credit institutions finance the rest of the value of the breeding animal through credit and leasing under the conditions specified by this Regulation. [32]
6.2-1. Discounts on imported breeding animals are given to breeding livestock farms registered in the "Electronic Agriculture" information system. [33]
6.3. According to this Regulation, the funds required for the purchase and sale of agricultural means of production on preferential terms for the relevant year are limited from the working capital of the Agency (with the exception of 2% provided for in clause 5.7 of this Regulation) and within the funds allocated for these purposes from the state budget, and orders in accordance with the current legislation is financed on the basis of
6.4. Financing of the sale, credit and leasing of agricultural production equipment on preferential terms does not apply to the resale and leasing of such equipment. [34]
 
  1. Monitoring and evaluation
 
7.1. Authorized credit organizations regularly monitor business entities and submit quarterly reports to the Agency in the form determined by it. When cases of non-use of concessional credit funds are detected during the monitoring carried out by the authorized credit organization, the authorized credit organization must demand the premature payment of the unused part of the concessional loan and the interest debt calculated on it from the business entity. It is prohibited to grant loans to such business entities at the expense of the Agency for the next 3 (three) years. Regardless of whether the business entity fulfills its obligation or not, the authorized credit institution must transfer the unused part of the loan and the accrued interest to the account of the Agency within 10 (ten) working days. [35]
7.2. In order to monitor the use of funds for their intended purpose, the Agency can carry out independent monitoring of the entrepreneurial entities financed by a selective method. During the monitoring carried out by the Agency, when cases of non-use of the preferential loan funds as intended are found, the authorized credit organization shall transfer the unused portion of the loan and the accrued interest to the account of the Agency, regardless of whether the business entity fulfills its obligations to it or not. If the authorized credit institution does not ensure the transfer of funds within 10 (ten) working days after the written request of the Agency, a fine will be calculated in accordance with clause 3.5 of this Rule. If the transfer of the required funds exceeds 30 (thirty) working days, the Agency takes measures to return the delayed amount.
7.3. The evaluator determined by the agency carries out the evaluation of the projects and (or) agricultural means of production that are financed.
7.4. Insurers and (or) insurance brokers carry out the insurance of the agricultural means of production financed under this Regulation in accordance with the conditions determined by the Agency.
7.5. If authorized credit institutions are found to be in violation of the conditions set for the project, these authorized credit institutions are excluded from the project and they pay the loan funds to the Agency without delay, regardless of whether the borrowers fulfill their obligations. The agency immediately submits information to the Central Bank of the Republic of Azerbaijan about authorized credit organizations that violate the conditions set for the project. [36]
7.6. In order to guarantee its obligations to the Agency, the authorized credit organization issues a written order to the Central Bank of the Republic of Azerbaijan on the withdrawal of the relevant funds from the correspondent account of the authorized credit organization at the Central Bank of the Republic of Azerbaijan without acceptance, at the request of the Agency. This order remains in force until the obligations under the contract concluded between the Agency and the authorized credit institution are terminated.
 
LIST OF SOURCE DOCUMENTATION USED
 
  1. Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper, April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402)
  2. Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95)
 
LIST OF AMENDMENTS AND ADDITIONS TO THE ORDINANCE
 
2- the words "(by means of leasing or credit)" have been removed from part c.
 
[2] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) In paragraph 1.3 of the "Rule of using the funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan", the words "guarantees" and "in full or in part" were added after the word "loans".
 
With the Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) "Agriculture of the Republic of Azerbaijan In paragraph 1.3 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry, the word "Loans" has been replaced by the words "Concessional financing, including loans, leasing funds".
 
[3] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper, April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) Clause 1.3-1 has been added in the new content to the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic.
 
[4] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) The words "Financial Markets Control Chamber" have been replaced by the words "Central Bank" in paragraph 1.7 of the "Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan". 
[5] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) In subsection 2.1.3 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the words "concessional sale and leasing" were replaced by "concessional sale, leasing and lending".
 
[6] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper, April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) At the end of sub-clause 2.1.5 of the "Rule of using the funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan", the period sign was replaced by a semi-colon and new sub-clause 2.1.6 was added.
 
[7] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) In the fourth sentence of paragraph 3.1 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, in the first case, the word "funds" has been replaced by the word "funds", and the words "after" have been replaced by the words "during the period".
 
[8] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) "Azerbaijan A new second sentence has been added to paragraph 3.2 of the "Rule of using the funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan".
 
[9] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) "Azerbaijan In paragraph 3.3 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the words "if not fully used until 1 (one) month before the end" are replaced with the words "if less than 80 percent are used until the end" and "until December 1" replace the words "until December 31", the words "unused funds" with the words "the part of the limit that is not used and (or) is not intended to be used according to the information of authorized credit institutions", after the words "by a decision" in that clause, " is canceled and (or) for that fiscal year" and the second sentence was added in the new content.
 
[10] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) Clause 3.3-1 has been added in the new content to the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic. 
[11] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) In paragraph 3.4 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan, the words "they pay within the terms determined by the contract" are the words "according to the contract, they must pay the Agency no later than the first 5 (five) working days of the following month" replaced by
 
[12] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) The words "residual amount" was added after the word "loan" in the third sentence of paragraph 3.5 of the "Rule of using the funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan".
 
[13] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) Clause 3.7 has been added to the "Rule of using funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan.
 
[14] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) In the title of part 4 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the words "Loans and concessions to entrepreneurial entities" have been replaced by the words "Funds related to concessional financing to entrepreneurial entities".
 
[15] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) In the first sentence of paragraph 4.1 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the words "lease funds" were added after the word "loans", and the words "lease funds" were added to the third sentence after the word "loan".
 
[16] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper, April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) "Azerbaijan In the sixth sentence of paragraph 4.4 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the words "(except for concessional loans provided for in subsection 5.1.5 of this Regulation)" were added after the words "credit funds". 
With the Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) "Agriculture of the Republic of Azerbaijan In the fifth sentence of paragraph 4.4 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry, the words "from loan funds within the project" were replaced by the word "from funds", and after the words "concessional loans" in the sixth sentence of that paragraph, "and for projects financed in stages" tranches of the given loan" were added.
 
[17] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) Clauses 4.4-1 and 4.4-2 have been added to the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan.
 
[18] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) The words "and leasing" were added after the word "loans" in the name of part 5 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan.
 
[19] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) The words "and leasing funds" were added after the word "loans" in paragraph 5.1 and subsection 5.1.5 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan.
 
[20] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) In subsection 5.1.1 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the numbers "5,000" have been replaced by the numbers "15,000".
 
[21] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) "Azerbaijan in subsection 5.1.2 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan, the numbers "5 001" have been replaced by the numbers "15 001". 
[22] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) The number "2" was replaced by the number "3" in subsection 5.2.1 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan.
 
[23] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) Clause 5.3-1 has been added to the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan.
 
[24] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) The words "and leasing" was added after the word "loan" in the first sentence of paragraph 5.4 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan, and the words "and leasing" were added after the word "loans" in the second sentence.
 
[25] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) Clause 5.6 of the "Rule of using the funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic" has been revised.
 
the previous edition said:
5.6. Entrepreneurial entities pay interest and principal on the received loans in equal installments on the first working day of each month, starting from the next month after the end of the grace period, in accordance with the loan agreement.
 
[26] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) In the second sentence of paragraph 5.7 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the words "and 7 percent" were replaced by the words "7 percent, and 5 percent for all types of loans to agricultural cooperatives."
 
[27] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) Clauses 5.7, 5.8 and subsection 5.9.1 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan have been revised.
It read as follows in the previous edition:
5.7. The Agency provides the funds provided for in this Regulation to authorized credit organizations by applying 2 percent per annum. The highest limit of the annual interest rate (including the 2 percent provided for in this paragraph) applied by authorized credit institutions to the Agency's loan funds shall not exceed 7 percent.
5.8. 1/2 of the interest amount paid to the account of the Agency for the use of credit funds provided through authorized credit organizations is kept in a special account opened by the Agency for the purpose of guaranteeing problematic loans. These funds are directed to take measures to make payments on overdue loans, as well as to write off bad assets from the balance sheet in agreement with the Ministry of Agriculture of the Republic of Azerbaijan.
5.9.1. 1/4 of the remaining amount is allocated for the purpose of strengthening the social protection of the Agency's employees, providing supplements to the monthly salaries, strengthening the material and technical base of the Agency and increasing its scientific and technical potential in the field of agricultural projects and credit management;
 
With the Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) "Agriculture of the Republic of Azerbaijan” the word "and leasing" were added after the word "loan" in the second case in paragraph 5.8 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry.
 
[28] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper, April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) "Azerbaijan In subsection 5.9.2 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the words "as well as increasing scientific and technical potential in the field of managing agricultural projects and loans" were added after the word "payment".
 
With the Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) "Agriculture of the Republic of Azerbaijan Clause 5.9 of the "Rule of using the funds of the Agrarian Credit and Development Agency under the Ministry" has been revised. 
It read as follows in the previous revision:
5.9. After deducting the part of the interest paid to the account of the Agency for the use of credit funds provided through authorized credit institutions, the remaining amount kept in a special account is distributed as follows:
5.9.1. 1/4 of the remaining amount is allocated for the purpose of strengthening the social protection of the Agency's employees, giving supplements to the monthly salaries, paying the labor of employees involved in non-state positions, strengthening the material and technical base of the Agency;
5.9.2. 3/4 of the remaining amount will be used to organize cooperation with credit organizations, carry out information, advertising and marketing activities, pay for consulting services and other services provided for the efficient operation of the Agency, as well as increase the scientific and technical potential in the field of agricultural projects and credit management. is spent.
 
[29] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper, April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) Part 5-1 has been added in new content to the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic.
 
[30] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) In clauses 6.1 and 6.2 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan, the word "credit" was added after the word "sale".
 
[31] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) In the first sentence of subsection 6.1.3 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the words "sale determined as a result of evaluation" were added after the word "technique", the word "credit" means "through credit or leasing" they finance" was replaced by the words, in the second sentence of that subsection, the word "Lending" was replaced by the word "Financing".
 
[32] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) In subsection 6.2.3 of the Regulation on the use of funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the word "credit" was replaced by the words "finance through credit and leasing".
[33] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) Clause 6.2-1 has been added in the new content to the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic. 
[34] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) The word "credit" was added after the word "sale" in paragraph 6.4 of the "Rule of using the funds of the Agrarian Credit and Development Agency" under the Ministry of Agriculture of the Republic of Azerbaijan.
 
[35] Decree of the President of the Republic of Azerbaijan No. 1584 dated February 1, 2022 ("Khalg" newspaper, February 2, 2022, No. 23, Legislative Collection of the Republic of Azerbaijan, 2022, No. 2, Article 95) Clauses 7.1 and 7.2 of the "Rule of using the funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic" has been revised.
 
It read as follows in the previous revision:
7.1. Authorized credit organizations regularly monitor business entities and submit quarterly reports to the Agency. In order to control the use of funds for their purpose, the Agency together with authorized credit organizations conducts purposeful monitoring of business entities that have received loans.
7.2. When cases of violation of the terms of the loan agreement are detected during monitoring, authorized credit organizations demand early repayment of the loan and interest debt from those business entities. It is forbidden to provide loans to such business entities in the future at the expense of the Agency.
 
[36] Decree of the President of the Republic of Azerbaijan No. 985 dated April 8, 2020 ("Khalg" newspaper April 9, 2020, No. 65, Legislative Collection of the Republic of Azerbaijan, 2020, No. 4, Article 402) The second sentence has been added in new content to paragraph 7.5 of the "Rule of using the funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture of the Republic of Azerbaijan".