Azernews.Az

By Nigar Orujova

The State Fund for Development of Information Technologies has allocated 4.6 million manats for financing IT-projects in Azerbaijan in 2014, the fund reported on January 19.

A part of these funds was given to 12 entrepreneurs, specializing in the field of information and communication technologies, in the form of soft loans.

“Another part of the state financing in the form of grants was allocated for implementation of 31 startup projects,” the fund said.

In late 2014, the state fund announced the second competition within the framework of startup projects grant support. Some 65 start-up projects are represented in the second competition.

Some 5 million manats have been allocated to support projects in 2014 from the budget of the state fund.

Small, medium and large loans can be allocated to finance the projects. The amount of small loans varies from 10,000 manats to 50,000 manats (for 3 years), medium - from 50,000 manats to 500,000 manats (up to 5 years), large - from 500,000 manats to 5 million manats (up to 10 years).

The interest rate on the loans does not exceed 5 percent per annum.

The maximum grant amount can reach 300,000 manats (for 36 months). Small grants are provided in size from 10,000 manats to 100,000 manats, medium - from 100,000 to 200,000 manats, and large - from 200,000 manats to 300,000 manats.

Working under Communication and High Technology Ministry, the fund was established after a presidential decree on March 15, 2012.

The main objectives of the fund are implementation of the state policy on development and support of small enterprises in scientific and technical spheres, providing them with direct financial assistance and training, which in turn will contribute to the creation of new workplaces in the country.

The startup movement is now developing fast in Azerbaijan and the government sponsors the projects, especially in the sphere of high technology.

The volume of investments made in ICT sphere by enterprises and the structural divisions of the Communications and High Technologies Ministry stood at 57.2 million manats ($72.8 million) in 2014.

A total of 142 million manats ($180.9 million) was invested in the ICT sphere in 2014. The revenues volume from the ICT sector and postal service of Azerbaijan increased by over 16 percent in comparison with 2013, and stood at 1.7 billion manats ($2.16 billion) last year.