Azerbaijan has announced new state support measures for businesses, including compensation for export transportation and customs clearance costs, loan interest subsidies and state guarantees, according to the Ministry of Economy. The Economy Ministry said the measures were presented during a meeting between Deputy Economy Minister Azer Bayramov and entrepreneurs operating in the Lankaran-Astara economic region in the city of Masalli. The meeting highlighted that, in line with the economic policy pursued under President Ilham Aliyev, the government is expanding state support measures and introducing new mechanisms to promote investment and production and increase economic activity in the regions.
Entrepreneurs were encouraged to make active use of the favorable business environment and implement new initiatives. The ministry said more effective use of the Lankaran-Astara economic region's economic potential, particularly through industrial development, expansion of agricultural processing and industrial production, and creation of value-added and export-oriented industries, could contribute significantly to the region's economic development. A presentation was held on new and expanded state support measures for businesses, as well as opportunities to promote industrial and investment projects.
The government will cover up to 70% of transportation costs incurred when exporting non-oil and non-gas goods of Azerbaijani origin. The amount of support will be determined based on transportation costs and the customs value of the goods, depending on the mode of transport used. The new mechanism will take effect on September 1 this year and remain in place for 10 years.
It is intended to increase the competitiveness of local products in foreign markets, reduce logistics costs and expand export markets. The government will also cover part of customs clearance costs for exports of non-oil and non-gas products of Azerbaijani origin. Exporters classified as micro, small and medium-sized enterprises will be eligible for the support.
The mechanism will take effect on September 1 this year and remain in force for five years. A separate mechanism will make loan guarantees and interest subsidies more flexible and efficient, with the aim of expanding entrepreneurs' access to financing and facilitating investment projects. Entrepreneurs will receive a subsidy equivalent to 50% of loan interest payments.
The subsidy will apply throughout Azerbaijan except for Baku and the Absheron district. The government will provide guarantees covering up to 90% of the principal amount of loans issued in liberated territories and up to 50% of loans issued in other regions, excluding Baku and Absheron. The measures are expected to boost regional investment, reduce the financial burden on businesses and provide an additional stimulus to the non-oil and gas sector.
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