UNDP Microfinance Assessment Report: Azerbaijan
UNDP microfinance assessment reports take a full perspective of national economy, politics, culture and the climate for microfinance. Their contents are structured around 9 common components of which three are microfinance specific. The components are:
- Executive summary;
- Political and administrative structure;
- Socio-economic situation;
- Cultural context;
- Finance and banking;
- UNDP Country office;
- Donor and international NGO Interventions in microfinance sector;
- Potential and demand for microfinance;
- Abbreviations, acronyms, currency equivalents, fiscal year, official poverty indicators;
Banking and finance in Azerbaijan show disfunction, insolvency and bad debt, particularly in agriculture. Banking charges can reach 20-30% of the loan and interest rates are shown as 15-25%.
Interventions in the microfinance sector are predominantly by international NGOs -World Vision and International Rescue Committee - with agencies and donors supporting agricultural initiatives.
Potential and demand for Microfinance has not been measured by market research although there is much informal finance and "microfinance seems ripe for expansion". The report lists potential organisational involvement and further risks and special considerations.
