Azeri Rural Credit

CredAgro is a non-profit, non-governmental lending organization in Azerbaijan that provides access to working capital and investment loans for farmers and agriculturally-related rural enterprises that have difficulty obtaining credit from other sources. By doing so, CredAgro seeks to improve the financial well being and standard of living of borrowers and to enhance the economic development of Azerbaijan.

United States Agency for International Development

The United States Agency for International Development (USAID) is the main provider of bilateral development and humanitarian assistance for the United States Government
Since 1993, USAID has spent more than $200 million on activities in Azerbaijan. USAID's program in Azerbaijan is focused on private sector development, economic reform, civil society and democratic reform, and humanitarian assistance to refugees and IDP's.
In addition to the Azeri Rural Credit program, USAID is addressing the needs of small and medium enterprises through the provision of microcredit, development of agricultural input markets, transfer of production equipment and technology, business training and consulting, and promotion of economic reforms. For more information, please contact USAID at (3272) 980335.

Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance:

Is a U.S. private, nonprofit international development organization founded in 1997 when ACDI (established 1963) and VOCA (established 1970) joined forces.

Upon request, provides accomplished specialists to introduce proven ideas, technologies, and management practices to farmers, businesses, government agencies, and other entities .

Enables developing/emerging market countries to address pressing economic and food concerns, along with enabling entrepreneurs to become stronger participants in local, regional, and global marketplaces.

Has as one of its seven goals the creation and development of self-sustaining, readily accessible financial institutions.

Has experience in over 135 developing/emerging market countries, and in 2001 alone, administered sixty projects in forty of these countries.

Is a participant in the U.S. Silk Road Caucus to restore the famed ancient route as a channel, once again, for economic, political, and cultural exchange.

Has provided services to Azerbaijan since 1996 and is currently administering the following programs: Farmer-to-Farmer; Central Area Economic Opportunities Project (CEO); Azeri Rural Credit Project (ARC) - CredAgro.

Registered as a not-for-profit non-governmental organization, CredAgro is licensed as a limited liability non-bank credit institution that has branch offices in Baku and eight Rayons. The company is presently owned by Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance - ACDI/VOCA, a non-governmental private voluntary organization headquartered in Washington, DC, USA. A start-up grant was provided by the United States Agency for International Development - USAID under the Azerbaijan Rural Credit (ARC) project. The current funding grant expires in May 2005, at which time ownership of the company will transfer as directed in the organizing documents and CredAgro will become independent, sustainable and operationally self-sufficient.

Conceptualizing the destiny of CredAgro beyond 2003 is the theme for this Business Plan. Based on the projects founding vision as stated in ACDI/VOCA's original proposal to USAID and its current extension, CredAgro has eight business objectives (slightly modified from the original) that include:

· We will continue CredAgro's growth as a centrally managed loan capital fund with a network of branches. We will maintain direct control over CredAgro's loan capital fund.

· In its first two years of operation, CredAgro has attained a reputation for trust and credibility. We will take steps to continue building the confidence and loyalty of client/beneficiaries.

· Within CredAgro's headquarters and branch offices, we will create an enabling environment for on-the-job training and human resource development for our employees.

View JABC - Non-Financial Services presentation

Read CredAgro Annual Report 2002

· We will ensure that all CredAgro's operations and transactions are done at the highest professional, legal, and business standards.

· Whenever necessary and feasible, we will use local experts for business advice and technical support.

· We will set up Regional Advisory Committees with local client/beneficiaries as representatives. These committees will exercise democratic principles in advising CredAgro management regarding regional policy making.

· We will establish a Supervisory Council with two or three of its members appointed from notable and influential people in the Azerbaijan community at large and four elected from the Regional Advisory Committees. ACDI/VOCA's Country Representative will chair this Council and serve as the seventh member.

We will seek supplemental sources of loan capital from a variety of sources. We will engage client/beneficiaries in the future capitalization of CredAgro, giving each investor/owner a role in determining the organization's destiny.

Last updated on