Under the Decree of the President of the Republic of Azerbaijan dated June 9, 2026, the credit guarantee and interest subsidy mechanisms have been improved in order to expand entrepreneurs’ access to finance and, in particular, facilitate the implementation of investment projects.
Under the new rules, the management of the state guarantee and interest subsidy mechanisms has been entrusted to the Azerbaijan Business Development Fund under the Ministry of Economy. This will enable state support instruments to be applied in a more flexible and efficient manner based on a unified approach.
Under the new credit guarantee and interest subsidy mechanism, entrepreneurs are provided with a subsidy covering 50% of the loan interest rate. The maximum annual interest rate on loans is 13%, half of which will be covered by the state. The subsidy applies in all territories of the Republic of Azerbaijan except Baku city and the Absheron district.
Within the loan guarantee mechanism, the state provides a guarantee for up to 90% of the principal amount of loans issued in the liberated territories and up to 50% in other regions, excluding Baku and Absheron.
The new support mechanism will provide an additional incentive for increasing investment activity in the regions, reducing the financial burden on entrepreneurs, and supporting the development of the non-oil sector.
