AQROINVEST CREDIT UNION

Aqroinvest CUBaku 2007

Geographical Position

Azerbaijan Republic situated on the Caspian Sea

Population – 8.5 millions(51% urban, 49% rural)

Area – 86,600 sq.km (20% under occupation) IDPs, Refugees - 1 million (12%) Main exports – Oil, oil products Inflation rate for FY 2006 -8.6%

Microfinance Statistics in Azerbaijan

14 NBCO, 76 Credit Unions, 5 Banks in MF Active clients 192 000, Portfolio 211 millions USD Target Group – IDPs, low-income people, rural poor Only 40 districts of total 70 are scarcely covered by MF AMFA, AKIA, National Bank involved in MF ADB, WB, EBRD, TACIS in Azerbaijan MF Microfinance future sustainable in Azerbaijan due to

below factors: high demand of micro loans unemployment rate being high government support to informal sector providing access to capital in free-market economy

Background 2001 Established in Imishli

2003 Opened branches in Sabirabad, Saatli & Bilasuvar IDP & Refugee Settlement

2007 Opened branch in Varkhankend village, IDP Settlement

Provides loan service to IDPs and rural poor

Staff-20 employees

Number of clients –1200

Portfolio - 1 263 757.45

About Aqroinvest CU Partners: Ministry of Economic Development National Fund for

Entrepreneurship Support (SKMF) Social Fund for Development of Internally Displaced Persons

(MKSIF) Credit Implementing Agency, Non Bank Lending Organization

(IKA) KIVA (US) Azerbaijan Credit Union Association (AKIA) Member of: Azerbaijan Microfinance Association (AMFA) Micro Finance Center (MFC,Warsaw)

Agroinvest Sources of Funding

KIVA 15% MKSIF

45%

IKA 34%

SKMF 6%

Our Vision, Mission, Goals

Vision is to become advanced credit union providing viable financial services for union member as well as playing an important role in financial sustainability and economic well-being of Azerbaijani people.

Mission is to become advanced credit union providing viable financial services for union member as well as playing an important role in financial sustainability and economic well-being of Azerbaijani people.

Goal is to ensure that its members, preferably rural poor and IDPs have an access to viable financial resources and take an advantage of using these resources to determine a sustainable economic future for them. tribute to the business development of the union members and vulnerable groups of people by demand-driven lending services with desirable depth, width and length of social outreach.

Agroinvest Values

Social JusticeSocial Justice CooperativenessCooperativeness TransparencyTransparency PunctualityPunctuality ResponsibilityResponsibility TeamworkTeamwork

Agroinvest clients

Agroinvest LoansAverage Loan

Amount300-30 000 USD

Product name Business & SME

Loan Term 3-36 monthsGrace Period 1-6 months

Interest Payment 24-36% / per yearInterst Payment Declining balance, monthly

Repayment method

Flexible

Penalty 0.3% daily principle in arrears.

Lending modality Individual

Female clients Indicator 2003-2007

0

50

100

150

200

2502003 50 FemaleClient2004 88 FemaleClients2005 155 FemaleClients2006 181 FemaleClients2007 219 FemaleClients

Portfolio size

0200400600800

1 0001 2001 400

2003 2004 2005 2006 2007-11

Thou

sand

s

0100200300400500600700800

Gross Loan Portfolio Number of borrowers

Aqroinvest Staff

Contact Information

AQROINVEST CREDIT UNION

Address: Baku city, Matbuat av. 2, Botanical Institute

Phone/Fax:(994 12) 510 61 90 (994 40) 211 00 81