Azerbaijan: Government Bets on Cheap Loans to Boost Economy

To spur entrepreneurship and avoid the economic doldrums, the Azerbaijani government has renewed issuing cheap business loans. The Ministry of Economic Development will lend the money to banks at the bargain-basement rate of 1 percent. Banks, in turn, will provide loans to qualifying businesses at a maximum annual rate of 7 percent, well below market rates. The government will spend more than 300 million manats (roughly $374 million) on the program, the Day.az news website reported.