“Credit Implementing Agency” LL C NBCO

1. “Credit Implementing Agency” LLC NBCO Baku, Azerbaijan @ 2013

2. Azerbaijan

3. Azerbaijan Industry • Oil and gas industry • Chemistry and oil-chemistry • construction materials industry etc. Agriculture • Husbandry • Cattle-breeding • Poultry • Fishing etc.

4. A Brief History of “Credit Implementing Agency” LLC NBCO • “Credit Implementing Agency” (CIA) is organized in Azerbaijan in order to perform the component of Financing of Rural Lands of the Project “Agriculture Development and Crediting” by the “G&G Consulting” company of the Republic of Turkey in May, 2002. • CIA has been registered in the Ministry of Justice of the Republic of Azerbaijan in September 9, 2002 and received license from the National Bank of the Republic of Azerbaijan in October 25, 2002. • The founder of CIA was “Azerbaijan Credit Unions Association” Public Union from the date of August 03, 2005 after termination of the contract concluded between “G&G Consulting” company and the Government of Azerbaijan and CIA was re-registered at the Ministry of Justice of the Republic of Azerbaijan in September 22, 2005. • From the date of February 15, 2013, the foundation of “Credit Implementing Agency” consists of • 1 Public Union (Azerbaijan Credit unions Association), 11 leading Credit Unions and 12 physical persons that are members of the collective. • Since its establishment, CIA is cooperating with World Bank. Joined to the IFAD projects since 2013.

5. Main aim of CIA activity is to give micro-credits to the farmers in order to development the activities of small and medium entrepreneurship by Borrower groups (BG) and Credit Unions (CU) that called as local financial intermediaries in the 6 regions of Azerbaijan – Nakhchivan AR, Masalli, Sheki, Ganja, Beylagan and Khachmaz region. At present, CIA is implementing to provide micr-credits to the producers of agricultural products more than 1500 villages of 33 regions of the Republic. Our Aim • The Strategic Plan of CIA is to support the development of the agricultural sector of the Republic, and to achieve the establishment of specialized and sustainable Credit Unions institute

6. Borrower groups (BG)- is a group that consists of 5-10 physical persons who living in the same village, engaging in entrepreneurial activity and taking liability according to joint warranty. Credit Union (CU)- is a non-bank credit organization that created to their mutual crediting by focusing free cash of physical persons that combining voluntary and/or legal persons that is the subject of small entrepreneurship acting under “On Credit Unions” Law of the Republic of Azerbaijan, and under the common interest.

7. Our Strategy: is to improve the services provided to customers and required by them by using modern technologies and trainings and to create extensive branch network and strong client base Our mission: is to create conditions for the development of farmers operating in the regions of the Republic of Azerbaijan, to achieve the growth of agriculture sector by providing credit in transparent and the most favorable terms.

8. The services • CIA is implementing to give credits by the maximum reduction of expenses belong to the peasant and by the assessment of applications on granting credits, its clearance and its providing by the simplest methods. • Giving credits to BG • Giving credits to CU • Giving Consumer loans • Crediting of individual farms • The credits are given to BG in the amount of 500-3000 manats with 15-26% for 24months • The credits are given to CU up to the amount of 150 000 manats being annual 10% for 36 months (percent can be changed according to the latest six month auction rate of National Bank) . • Consumer credits are given up to 15 000 manats with 25-30 % for 24 months, small and medium-sized business credits are given up to 25 000 manats with 25% for 12-36 months

9. Information on credit amounts given by CIA during 2002-2012 (thousand)

10. Information on credit amounts that given by CIA during 2002-2012 (thousand)

11. Information on credit that given to Credit Unions by CIA during 2002-2012 (thousand)

12. Information on credit that given to Credit Unions by CIA during 2002-2012 (thousand)