Baku branch Beylagan sub-branch Kaverochkin str 13, Baku city M. Rasulzade str 107, Beylaqan Tel.: (+994 12) 440 8329; (+994 12) 440 8478; Tel.: (+994 152) 5 10 88 (+994 12) 449 8475 Fax: (+994 152) 5 10 88 Fax: (+994 12) 498 0650 Mingachevir branch Sumqayit sub-branch I. Qayibov str. 2, Mingachevir city 3/42, 16th block, apt 16, Sumgayit city Tel.: (+994 147) 4 1323 Tel.: (+994 18) 648 4372 Fax: (+994 147) 4 2024 Fax: (+994 18) 648 4372 Catel: (+994 12) 418 7871 Catel: (+994 12) 418 7819 Yevlakh sub-branch Qaradagh sub-branch H. Aliyev ave. 51, Yevlakh E.Quliyev str., Sahil settlement, Qaradakh Tel. (+994 166) 6 5217 district Fax: (+994 147) 6 2394 Tel.: (+994 12) 446 4045; (+994 12) 446 9578 Fax: (+994 12) 446 9578 Goranboy branch H. Aliyev ave. 10, Goranboy It is easier with Us Imishli branch Tel.: (+994 234) 5 1101 H. Aliyev ave 140, Imishli Fax: (+994 234) 5 3231 Tel.: (+994 154) 6 60 30 Fax: (+994 154) 6 62 48 Tartar sub-branch N.Narimanov str. 2, Tartar Saatli sub-branch Tel.: (+994 246) 6 3065 H.Aliyev ave 148, Saatli Fax: (+994 246) 6 2352 Tel.: (+994 168) 5 2006 Fax: (+994 168) 5 2006 Ganja branch S.I. Xatai str. 62, Ganja city Agjabedi sub-branch Tel.: (+994 22) 57 9915; (+994 22) 52 1258; H.Aliyev ave 126, Agjabedi (+994 22) 52 1637 Tel.: (+994 113) 5 5106 Fax: (+994 22) 52 1714 Fax: (+994 113) 5 51 06 Shamkir sub-branch Horadiz branch Vidadi turning, Shamkir Ahmadalilar road, Horadiz, Fizuli Tel.: (+994 241) 2 3541 Tel.: (+994 141) 5 50 14 Fax: (+994 241) 2 3527 Fax: (+994 141) 5 50 14 Catel: (+994 12) 418 9507

Bala-Bahmanli sub-branch Qazakh sub-branch Bala-Bahmanli, Horadiz, Fizuli Baku str. 74/2, Qazakh Tel.: (+994 141) 5 0124; (0141) 5 5724 Tel.: (+994 279) 5 2322 Fax: (+994 141) 5 0124

HEAD OFFICE:13, Кавероchкин St , Бакu AZERBAIJAN ANNUAL REPORT Phone: (+994 12) 418 9417 Фаx: (+994 12) 440 1471 impact provider” In 2008 by Azerbaijan experienced staff and market leadership Microfinance Association, AzerCredit in rural finance, AzerCredit is fully went in-depth to support the social prepared to make 2009 another mission through taking Social Audit with successful year. This will be under the assistance of MFC & AMFA. Social leadership of a new CEO. After serving 4 Dear Reader, Performance Management system will be years as CEO of AzerCredit LLC, Ms established at VF AzerCredit in the Ljiljana Spasojevic will take over my It's with great pleasure that I present you the coming year as a part of strategic plan. duties as of March 01 2009. I'd like to take annual report for 2008, a year of continued fast this opportunity to express my gratitude to growth for VF AzerCredit LLC. 2009 will be a challenging year for the the staff and all other stakeholders for a organization. Although the economy and remarkable and very successful time, This year was characterized by a repetition banking system of Azerbaijan have not Sincerely, Gerlof de Korte CEO which I'm sure will continue in the years to of the high growth in number of clients and seen the turbulence experienced come. portfolio in line with an excellent portfolio elsewhere in the region, AzerCredit has quality. Within 2008 AzerCredit's outstanding taken a number of measures to prepare portfolio increased by 112% not affecting PAR1 for a generally worsening environment. Sincerely, Gerlof de Korte of 0,09%. These results combined with Lending products and policies have been Operational sustainability of 118% show the reviewed to reflect the changed success of the strategy of rural expansion. environment and growth projections have been curbed, but are still ambitious. New sub-branches set up in Yevlakh, Saatli, Beylagan and Garadagh ensured a better Further development of the internal outreach to remote areas. organization will be a key priority for AzerCredit, focusing on workflow Household loan has been introduced in m a n a g e m e n t , s t r e n g t h e n i n g t h e several more rural branches after the product organizational culture and capacity was successfully tested. Also design and policy building for all levels of staff. Also for village council methodology was being AzerCredit will implement a new business developed and prepared for initial pilot in the software, laying the foundation for mobile beginning of 2009. This methodology is banking applications. targeted to ease and improve access of clients in remote areas to AzerCredit services. With its strong financial position, Being recognized as “The best community ANNUAL REPORT 3 In Brief

VF AzerCredit was established in 1996 S y s t e m i n o r d e r t o e n s u r e t h e as a program of a relief-and-development organization is sticking to its mission, organization. In 2003 was successfully social objectives and goals. registered as an MFI founded by World Vision and started operating as a full- VF AzerCredit’s main goal – is to scale microfinance Institution developing become a leader in the microfinance into one of the leaders on the market of Azerbaijan and bring value to microfinance market of Azerbaijan our clients at the most. By means of this Vision and Mission nowadays. we are looking forward to becoming a self- investing organization with ability to VF AzerCredit was established in 1996 through the conventional banking system. Currently VF AzerCredit operates in reinvest into additional loan capital. as a program of a relief-and-develop- Baku, Sumgait, Mingachevir, Ganja, This implies that VF AzerCredit works in ment organization to provide credit to Agjabadi, Goranboy, Horadiz, Imishli, both the urban and rural areas of ensure people can take control over their Shamkir, Qazakh, Terter, Saatli, Azerbaijan but the emphasis is placed on own lives and livelihoods. Although much Garadagh, Yevlakh and Beylagan and is providing loan opportunities to rural has changed since then, the vision of VF in the process of expanding its branches businesses as access to the formal AzerCredit is still to assist people in to other regions, namely to Goy-gol, banking. developing a positive and self-sustaining Aghdash and Sabirabad in 2009. We lifestyle. However, the sole focus on loan is being serve more than 21000 active clients and

T have portfolio over USD 17 mln. VF AzerCredit mission is to provide replaced by a wider view on micro-finance R now as VF AzerCredit has developed into YEVLAKH financial services which have a positive Recent Social Audit at VF AzerCredit O a strong financial institution. impact on the lives of the poor. Recent VF opened a new route to establish and run P AzerCredit effort in establishing Social Social Performance Management E Performance Management is a QARADAGH R BEYLAGAN SAATLI commitment of organization to support L and implement the double bottom line.

A The primary objective of VF AzerCredit

U has always been to provide loan to those

N who are not able to access facilities N

A 4 5 ANNUAL REPORT M O M N

A P M h P w b W P M h i 1 d m V I N M Members ofSupervisoryCouncil Chief ExecutiveOf W Founder Gerlof deKorte n n o r o 3 e i e G o z r r r a a a i H s r s r a o t o e r g c l l v orld V . M t . S M M e e r d d n n i t y . L e n o O r a k e o r a g s i o r r e s s a a o o l d l s r e s m l n n n i s b i y r . l o a e g g d e a a . . n f a e d e a . 1 k i a a i i p B r z f e e T n e i G n n a u P u i h m s f t i d a e r i r i a i e o u j n a m i M l D 9 r A a h d r r a o s t d e n a G f f a r ision International n t i 9 n D n I s D i B z o i T , n e t o B n x d e o n i c 4 e a r n i n i p a A i a r t f e e r a - n n a r n d t h . I e a e i f l i 1

W b r o a n i

f s n t s i d e s e a a r r c k e e 9 a n n 1 a t n A o i v F p n n t o t e s n r a 9 t , t i i g a o m e n e j s h z h g r i A n h o r a t 8 w n o s e h R e l r W a t a , e e e 9 i c o i n l i n z W a g y y n r t s r o n y 9 e p , i e p C a e n e y r K r o g 8 o h t m e e r a c e r i c h r o n v - n r e h i f W a b c e e p i r m f d a 2 k e , e a a r ficer u i s e r o a a d r n l m e r 0 s n t l R l i

d V N e g r n e o r i d i g d a 0 t t j o s e c s a e s n . G A a e w . 4 w o o e e n r e C u M . c n n n O l h r i m n d C s aP a l d V h x s t g a t r i t g a . p c i i p a t a a a l l o o h y e T n d e h a s aP n t n r u s n a i i r t i r r

o n v i d s r . i e t n i z t r a f e s e y i o e i n c s a o M f e l s n a M o j v i t t p n e l o a c r i s h t u . e o c o s o c e i f r . a n n n l t . t j s B o e e s d W G G t s i n t u r t c d e o h i i r r o a t o a t r a a v t i i r n n h s n l e n n o l l h g d e d s y r t t f

6 S b “ L M a t h o C C M V p s M M M t m O M r e H h a n o f r a a i t o h i s F i p c s r r s o a c e c n d s A i . M w . H M t M . h m i a n I . M e j t h r r p ’ o k M e e f s L o o n a Y i y i e s r e i n i i n n c r m n n t a f i Q U s o e . a m m e u a c t i g I a w a F g n B Y t v r a n u r n a t r l s s ” B i b n s w . a r i a i e e o o o a o t i i l n n n h i A e v c g e n n v d v r n n a ( o n a a t O i u v e e k r H n r l a t e c a e d d a r r s s D n n y i i s r a i k d o e a v n g o s n v o f s c a h d Y i F n f a M , r i g p i o c k i e i g t h s o e T a t e h n o t d i o g a e i y h h o o n e a f a a s r v a v a u h n C n J a e d e n r i E M e s a h w t v n e s s t s n s h e c a a e . l a s i i b g o t v o e e n e r d e l t n l n a e k s i o . o o o o p a r r x g v t m a d t d t k a v h a s i p e e v m p r a e , e n t e w s e e a n i r , b e r d e i r r g t S d e o ) d i n a c o t r e u r o n . n t W i , n a n i t s r n o c S r e r g i i o E k t t n f g t a f a , n i i p n o e o l o c u g P a a t C h c V p e d f i c a n r n w o o t e d u e o r c h k C I O n s t a i n l o i . m h i z d p a e r a t a s a f e a e e e n e e d s a l l u i M c b t o . d o x s i z n i a r B t f o o r F . p . s e m I e o a F n r n a o o C e L d c r c I C e p r r a r a t i u o o h d a s d i l o i u a a n i w e r f f a i t o d t r r r d u t n y o W n W i a r e u y d B r e r y f c e o u m c r i o o e o V t a n c e t r t f d i f f s r o a h o k e t I i i l i l ’ a t r u n 6 n d a e n n s y s , , of theVF and hasaprofessionalworkforcewhoarethemainasset VF AzerCredit enjoysaverygoodreputationoftransparentorganization AzerCredit. 7 ANNUAL REPORT 2008 FundingSources 4 5 % % 6 % 6 % Deautsche Bank SFDI (fromW DWM Blue Orchard IncoFin WV USA WV PO 5 % SANDY orld Bank) 13% RIVER 13 % 8 4 % 16 1 % % Symbiotics Calvert CIF Oikokredit Planet Finance Rural Impulse EBRD V ision Fund 13 % 1 1 % 1 2 % % Balance Sheet Our Performance T Equity Other Liabilities Debt T Other Net Fixed Interest Receivable Net LoanPortfolio Cash &Bank otal Liabilities&Equity otal T Assets Assets o FinancialInstitutions Assets Accounts USD 2580926 2580926 107555 1414639 2297662 217323 2005 14993 18608 90730 32340 9 7 4160256 1707587 4363562 2488132 4363562 167844 2006 61704 50950 56682 33971 9403897 9403897 1061847 6832858 2204449 8003071 168478 366590 1 2007 59378 1 1 123 19547948 19547948 16019109 16697699 2992096 2150197 335396 536743 216507 148149 2008 ANNUAL REPORT Income Statement Our Performance Net Income Grants &Donations Grants &Donations Income Before T Operating Expense Net FinancialIncome LL Interest ExpenseOnBorrowings Interest, Fee&OtherOperatingIncome ax Expense Provision&Other USD

Financial Expense 893916 742743 127579 127579 870322 2005 29260 5666 10 - - 1334340 1 905835 203839 21 2006 181487 71813 64093 88759 7381 1220 2050073 2435779 1525320 423494 406615 369593 1 2007 16879 161 18138 14 2756307 3731237 4936930 730134 268846 936846 244797 770820 2008 40687 Our Performance 0 0 1 1 2 2 3 1 1 12 12 , , , , , , , 10 15 0 5 0 5 0 5 0 0% 5% 0 0 0 0 0 0 0 % % % % % % % % % O 20 10 P 2 p 05 0 o 6% 0 e r 5 0 r t , 9 a f 0 o % t i l o i o n

1 a a 20 18 t l 2 06

0

% S R 0 0 6 , e 1 i 0 s 1 l % f k 1

S u s 12 20 t a 2 0 0% 07 0 , i 0 0 n 9 7 % a b i l i t y 1 18 20 0 2 % , 08 0 0 0 9 8 % ANNUAL REPORT Our Performance 1 2 2 1 1 1 2 2 3 3 5 0 5 5 0 0 5 0 5 0 5 0 5 0 0 0 0 0 % % % % % % % % 0 0 0 0 0 0 0 0 0 0 0 O 2 3 p 0 3 5 0 e N % 2 8 5 3 0 r u 0 0 a 5 m t i n b g e r

C

O 2 3 o 0 0 8 f 0 % s 2 3

6 t 3 0 A 1 0

R c 6 12 t a i v t i e o

C 2 l 2 0 1 i 7 2 0 e 2 % 4 7 0 0 n 0 1 7 t s 2 2 2 0 1 6 2 0 2 % 0 6 8 0 1 8 Our Performance 2 2 2 2 0 0 0 0 13 1 0 0 0 0 70 90 10 5 6 7 8 0 0

1 N

T 4

ra 5 2 9 3 de

6 u 2 3

0 3 6 7 2 0 2 m 4 2 0 7 5 0 5 20 4 78 S

5 b

2 3 05 2 P 4 e t 4 ro

0 8 r

du 3 a

0 8 6 6 0 4 ct 3

4 O 6 io 2 f n f f 1

4 6

4 C 0 4 5 P 0 7

0 6 1 l

6 r 9 i S 0 e er o vi n ce 8 20 d 0 92 t 0 0 06 2 s

3 u 6

6 3 B

8 c 1

1 5 y A t 0 gr 0

o 0 i S 0 v 13 e i c t 1 2 t y 0 H 0 o ou 0 se r 20 ho 91 s

ld 3

1 5 07 4 0 0 0

1 1 3

1 4

6 3 0 0 0 1 8 0 0 12 0 20 3 08 2 0 0 0 0

6

2 4 0 2 0 0 0 ANNUAL REPORT 1327836 P Our Performance o r t 200 Household Agro Service Production T f rade o l i 5 o 2085055

B y

B u 2006 s i n e 3909885 s s

S e c t o 8 413983 201326 2007 r s 671509 14 129476 491 2008 150 14,146 159484 1427728 904603 218 907 202336 2 018393 2979066 5 634733 684 235 Our Performance $ $ $ $ $ $ $ $ $ 1 1 1 1 1 2 4 6 8 0 2 4 6 8

0 0 0 0 0 0 0 0 0 100 150 200 250 300 350 400 0 0 0 0 0 0 0 0 0 50 0 0 0 0 0 0 0 0 0 0

$ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2005 1 $ N 5 2 2

0 3 u 0 3 5 0 m O

1 4 8 u b t e s r t

2 2006 O a $ 0 4 2 2 n

f 1 0 6

0 d 3 J 6

15 4 o i 1 n 6 b g s

P C 3 2007 o 7 r 3 $ e 8 r 2

0 0 t a 0 1 f 7 0 t

o 0 e 3 l 5 d i o 1 $ 2 2008 8 1 2 6 0

9 0 7 8 0

2 5 1 ANNUAL REPORT Our Performance 2 2 2 1 4 8 1 0 4 8 5 1 1 2 2 3 3 2 0 0 5 0 5 0 5 0 0 6 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0

0

1 1 N 0 2 N 2 2 6 3 0 0 4 9 u 0 u 4 0 3 5 5 m m b b e e r r

O O f f 1

1 Jo 2 4 C 3 2 6 0 5 0 9 0 h 1 1 0 6 b 0 6 i s l d 16 S r u e st n

a I in m 2 2 1 4 6 0 6 2 e p 1 0 7 0 4 2 7 d 0 a 2 7 c t e d 3 2 1 2 7 1 2 0 9 5 0 0 9 0 8 0 0 8 Our Products Household Loans Individual AgricultureSma Individual UrbanSmallLoa Individual AgricultureMicr Individual UrbanMicroLoans Group RuralLoans Group UrbanLoans o Loans ll Loans ns 17 ANNUAL REPORT b e d o w t w a i r h c i h s s o u m w r S c f y s m p N S Shukurova Shahniyar Our Clients n n h a e e o h e e i o x i r u n n e r e h h o a i x f f s e o o e r n g n s y e t n a t f a o u s c b a r m i u u s u e t i t t u e r a t k a

p c a b d r e r r l g h e h s f e k l f e e n e l h s m a i n i z e d i u f a i a t h e a e t r n u c d n t e m d

d a g r i s e r l a i n n t n r r r z e h g r b f t o s r o a e n l u t a l a o o d g e i d t a i a d a t a . i y o a n f a d n e l l h n b l s r v a

n e t l b d t n o f a n s m g a i v i a t m d a l a s a T i t h o w h l m d e r a n s n e a a e r e b m t t m o e r e o n n a a . d

r m l r o t l e o S w g t n s d i i u . o y v . l i S l t n o v t I f s u l l l o o t e

h f f e s h o v y g . i T s a i s h a o . a l a I t n m t . a e i l n e S e Q t c t a w r h h l

a e r A b l a m a g l h w t T i H s n g t o l a a l e a D e e g a e a o h e e z y s r q n t h e u c i g a i e t r e n a d r u d f e e u f u r s

l u e i l o e t l a n e e t r y e o y n e t o r r p e p l s i d n n d t d . i c a w t m

a

t o d e f r p l t e p t o h d o a a r l o m r h T d i a n f w i i o o I r l e v a i s f e n t t i a t i g , l e i l h f t h o a o h r i i e s l v i d w p n w g u i J n J t t h t t r a e i o n k e o a t i a h r i e r n a r a d l s a r t b a s e y n e f i c t r r r a t i h i d Y n b i b f r s h

d L d e c s y y s

d t s e p a o e c o w g r t e r t e o i y t i r u h s a a m s a s s a m . v t y r m e u m p b d a i r k a f h c e n i t t y h e y o o B r r r o d i r r g b s e a s e A l i i e o r h t a i e r w u n y l r l e g a

c h h y y t t d v n a z u d c a n a

a d w i h t i c r d t e A e o d i c t i f . e s a h s e e u n s g n w d e a h i r r m n o f i o s i r b n i r L s m s s d s . a e n o u l S a c n

t o d a a s . i e a t L r o m r d r s a f s r m y y r h s r W m n r i a m s a i n f e f a o “ e i 1 o v t l c e e u t i a o c y l I a t d

s b d l e k m t 9 e n e c e t h e n l a f t h h u . n o

t y i b r t b 6 e n r e d t e . t a o n t m w h o c A f a h i t t n . l 2 i i w r d r n

n m a a e t i v e a v h h t e W e s t y t o o i M h e d e n a e h n n a s n e e t r a e o m s i i i i o d d e e e n d e a o n e d a n s y s s y y r r , I t I f

18 a a A l o e a t 2 r f b l f t g i o o l r r e f o s n r m 0 u x e u a z e a o g m s p u d 0 s t e i d n k t t a i i r r 4 r e h i s n s g e i n n a c m $ s m t r w e o s g w r i i n o 6 h s n y e s s i i b d f u 0 a i n l a g s r d s n l i e g 0 n o s g t h e i v d p g i r a t h . m g o a o s e a o . a A a n t y l . A e g u o w o b l n o . W t s e w m g r A u o a d . u . G t t h e a r u h a y z y r M n n t t o n y t f e e s b h h e o i s d l y n n r l e e r a d i e w c r g l d t r t e h s r p t r r g m s I e o i I i e t d u u . p m e e a a ” d p s a l o c d y l p e i b a i e r t i o t m n p r a y t s h b m i g o t l e s Ia . n y e a i b e r e e d i d I a l n s y i n p d n . s t t d c e i w i g m t a f c t o p s o o T d u l a k n m p u e y e r d h s t t l p s t x a y i e e o i y l o n e p i p o d n f $ u d f b c e s o a u e i 2 t e u h t

; r n r a s a I 0 t d o s a d I l i t l 0 i n m i r c l o n o n e n i s . g 0 g n f g g d i t e f e s i a r I e i a t s y c e t s w i r a t n a s o e t a d i i m m n o n e i d l u t m i l i t d n g h d y y s y r I . I a f s I b b S p I t T n r W a m l 1 v t B t A i I s c n l b A Q T Hatamova Sugra i n o Our Clients u n h h h n n e v m i t i m o u r a 9 e e h h h e r r l v f a v a c e r e

e e i n h i l a m o u s t 9 i e v e e t 2 e n a i O i a a a z r g o m i y y o n h e l f z o i i v 2 g 9 n t i i 0 g g a e a n d l l l h u r a e c v g w e n H f l e e d b r 0 h . c 0 e r m n i k e e k b n h t s a n d e r d n b g f i e t 0 o a a l 3 h w C v i o s t r a i o t o a t c o a a 5 i u e r t h r s b m 2 e t l e l t s l i r u u r u e n a o p s a y a f e n l k a s s t d e m s

e d i , l r a h a n . s n e i d r l o m y h r i S h v . s k b y h v d r n e n A o t e w S n i g , p e o e l e y i e s a n i e A o e o h b o n d t 1 u o h i t u l z u n v h h h e h d n b g I e o v s a o a c 9 t h t n t v n e . t l i f i g a u t e o g h i , e p n s a s l p h c c n t u c t i 9 r t a l 2 h e r l s m l o a a

v . a i e u t h m f k e a s l e p e 3 a n r a A f i a a 0 e r e k t g b r o b f p a d e y w i d l l

e n o e n m g 0 d r t r a t s t a r e a n t e i m o e e m i f t 3 a o e y d h r n i a e h n t m a l e d . e n i r a h e c c 0 y f d m l e i t o y t b s e t e p I e y l n f b i . i e o a o d o a a y m 0 d e i e Vi o a n n p n a r i o m u t f n n p h o t i a f t m n S d t g h r i s l i n . h u m l o a v p s d i d s e a a n b r a o l r u t e u f a a h T a a g i n h F e l r i f r h d e o u a n a l v l m e t q d u i t d t e l g l l h h s l R l i i c a a e r s e r n l e n i u e o z

r g y e t n e d a o t b s t a g d d i e a b u b a n s d . i e h g r e o o t n r f t v s y ’s e i s t s e f t l o s s s b T i o e e e n h s d n i n a i e a s t d g c t i e e a

a n h c b s h t e w a o e m s r c h a r u i i w f d r n c r h n e t e r n d t a o u t o r n a V i e y e e t a e e o k m i c i o w e y i - v i p r l s r e m s a a l n v d s F s n a y u t . t i C c i u e r e b n h e o v n i s l t e c

e s p k b s p l t o s r s o - m t s a g t a i e d l r t h e m x e i n o t a o h g a e t e f A c m e a n a n p I d b a e g s g o r e r y s t t u r A i t d z y d i o g o s a z e m . u c n m n a e f e Q s i e z c h a h w e a n p a a n n w t s d n s d u i i h b c e r c a n e n a d t r a d a n i r t g i C o n n g t t a s e e n e u e r h p o i e e l i s y d e h z b a r t n e i p b i g r p r d s e p f p t s v i f k e n r a m s b e a l q g , s a t y y h o r s t e i e . . u t t e l i d s a a e i m I h a e a u a h y i j n n d F h r r o a t t t e i i y y e h n e n d a g h n h e h a t t i o e t n n s i i s i ’ l i i e d p o g n e n n h e d d e a d e n s y l r r r . . , . l

19 b t S n t S a N g v c S s o a I a h n e a a u e n r f l u h h o l k r o o g r m s w d e q e e p w 2 e m p w t i e e r o a 0 n e t b c e a h i t e S t b 0 e n o a a o t l a a d a o u 5 s g o f r b t u t o s . h n t b s u o q . r l g h n e e l a d s e y t e r f h e a o h n 2 . s s t t m m o g u h e k 0 . i a h n a s r r e 0 o N m a o T s n f n c c g s V u w t e V s f a h e h a o t F x i f r u i y i r s v n i r l t c o t v d r i e e g e A k e e r e e y e r t r , d e z d e ! , e n a c n e a . n a x m r p p o A s r n p r o r C l w a e . e n e a a u s n n r d d s f n n l h e r d t t , t i d r r e d i g a f e t y n i r h i w e n n c t o g h a r d g a o e m k v a a s p n e h e d t c o o t e a r b n s a l y y r t 6 p r e h d i l , a v v i t e e f m t n h e t e u o m n o e g e s s r u n p n t p , i c f a e n s a i a r t h b t b d e o m u n f l t r n v e r r 3 a h d e i o e i l , n e n e y s 5 t m a d o g h g h d g t l n r e a i o o w g n t a d e h n n t e e g i i a p n a e d s l r t , l ANNUAL REPORT a m w n b o g A m n a c f t T e I b I s s e I a l b g “ Mammadova Gandab a Our Clients r a n m M h l o e o a r r u s n a d l e o h o s d i i o t e y k g e t e a s m w e t s m t n u c t i a y 2 m h r i n r s b a e w n o n s e e d o I r k c t 0 e i e e h b m n u n t ’ n a t t r g s d i a m s e I e 0 p v t s a n t h t . e a l s i g n o s h t a m i l z d d 1 r o i . b g o e , i h l r m o i s . o m e o e

n a r i b r f l w e o i n T v r o t r e h n T d n t e t b e t r a i h o w n w e o i h e f h m c . a e i e h o m s y t k n e m i t d r e T r d a e h m h v u r s s a n c e a g e r m e s o n n i e o h i . r n , e m r n s t y c d M W l s e f a m f . d e n e y o k d c g r h b i o , T t m I e n c r t e n a a o s h o y I

b m u i p f h w l a d a m h n m d d o r r a i h u t i s t e u o o l o p n y l e n i e o e o t d e s s m o t o n e s f g c m h r i r a i h f c c l n i o g f n o i t t l r n a t e t a a f r n i w i V t i s o g h i n d i a d i m v e d h e a v m u c d f a t o i e h e n t e i n h a h e s e s l e o p o d y e n t s k t i e d i d t i h e n e s h c r f z . v c e o r c s s , h c s a I d s b h t a I a a l d i a n d e o a i y t a r a o u i a t w i d e t t h i l t e

r x s o n i G s l l m w s a a n i t m A n o f a t o d p n o d h c u d b e m h l p t d a e t n e t u o z i e a e m u y n s a m t e p n s n r e k y l a d n e s t t i g d e n r l o e e o f d b o n i I a r y n d d e s i m d l C t w h n a u f e i t i l i h s e y s f I p f n f e o h n o o a w e b s e r w i a

e . a d r t c c e a g h w r h i o . w n o a a d . t n e g r a t t d v a a o s e m v I e d h o u r s , h e I s i n e s d i d o v s i l a t a

r c c o d s o s y I e s e a n h 1 s a o o l t s t e a I I o t s s c v c k a i I e 9 a n f t d n g n o a l e m t o l n o w w w w w r o 9 h y i s o h . t t t m t s l u e w a h o h e e h 0 u t a a a a b e a n e e l l w n e p e e d n d d e o l s s s y s s l - r , t I l

20 t S g a s s c m i l F t $ t n o h h h o u l o f 2 o o i c a a f e a e e l p i 0 o r , i r n n d i t y d n p r e n 0 r I i g e d t t h o a h o . d s h l t f e I r e s e w d o . e r o p n t l e t o a r p c u a a T i e m 2 o d m r t i s y p a d t h s 0 f i i e e s i p n t s l e a n 0 y V o i l e t d d n A g 1 n b y h i t s s k s $ h c u z e t i t f i t s o u r 2 e a i a o o o l e e w p t 0 r n t n n r t l h a C p a e h o 0 k f d e a o s F o s r v e 0 V e e r e U m e r u l . s t p i t d l m o u n s n . u n e N y i ” u i t t d t c i c o a y o h o v r h d t n n r b e w r A t a f i i i d a u l r a c F m f z n i s o g s I m b e u d i a i e r e i t s i c r n n y i p g C n s l I a m . d e y p t h u c a n r h s A l y e e a e n m i s e a z d o v d o . s o n a e e i f w o t f u c n s r a e t n c e I n u a d a r r s t l m k h n e w o r f t e a e d d t o o a h o n v a i r n o t c h e t t d m m f a h h a o y o i n a e e e s y s r - f Our Partners Investment Peter between W underwent appreciate mission V Best particular forward Incofin and regions supported that inthese development management first “W Blue OrchardFinance Incofin’ Incofin incent e e a commercial will have regards Bereschka subordinated s is Oswald to to be are cooperation our focus been continue very VF support a the Manager happy institutions diagnosis aspects troubled times,it as AzerCredit with fact proud of working loans well VF to the highly our loan that Azercredit as AzerCredit with that continue to to of population mutually in to with its VF its through be future. VF dynamic are strengthen commitment social AzerCredit. Azercredit a AzerCredit highly is importantto partner this fruitful on several performance. and was rural growth excellent valued the cooperation Azercredit of since one to Ever areas dates capital debt such achieve rates. and of have asound 2006 since relationship transactions, of back 21 the a base Azerbaijan supported has T professional in a and o first then, to strong the of contribute a April we microfinance the role future the and appreciate fast-growing microfinance institutionsworkingin including social 2007 and by to institution and play to Incofin. institution the to when further impact to the in strong see a institutions the this senior underwent Incofin expansive In institution. Azercredit in intensify professionalism like this respect. commitment Azerbaijan. loan VF extended regard, in Azerbaijan an AzerCredit. in the strategy W develop. local extraordinary e cooperation we are W to one e currency its of strongly looking believe Incofin its “ social of The that the top the ANNUAL REPORT Awards recognized provider In Performance” Perfect included participation VF A supported Y ear wards September AzerCredit received 2008 presented results undergoing in by became as Azerbaijan” in Advancing , Rating portfolio the 2008 of MFI to VF a the the for VF with very growth recognition certificate the process organization. AzerCredit AzerCredit award the Social year successful best and 2008. of by Performance community Social stable Azerbaijan also was year 22 Audit. awarder P helped AR for as acknowledgementf impact Management indicators, VF Microfinance receive “The AzerCredit, on the Best but market. a in Azerbaijan, Community VFI Association, also which Green by or pioneering is number not Impact “Good which being only of Last the outreach level The social AzerCredit grievances AzerCredit notwithstanding of operational AzerCredit products Social Y system The Social PerformanceManagement VF New sub-branchesopenedin2008 evlakh Annual Highlights Social impact AzerCredit purpose organization of indicators Audit withassistance poverty as and in are Performance of operations, a in general. in system, Beylagan micro-finance and of part autumn in the opened for the financial incentive demand. is of financial next each poverty also Clients increase strategic of regions, which four 2008. Management, year VF investing crisis system Increased on will measurement AzerCredit results new of MicrofinanceCenter . is their plan, The The awareness all achieving be its over for sub-branches mission, tracked in lives. results main as field show developing number the 23 it client which staf expansion looks goal world of through tool of Develop that Social f. and staf of are will is in to during staf social f the the to to support be the about targeted Audit to poverty identify & f develop second to members loan new AMF MFI performance 2008 ascertain revealed social the remote cycles A measurement continues VF to wasconducted half in Customer double be AzerCredit component Garadagh, in of in a gaps areas covered VF 2008. more order management bottom-line. AzerCredit, its in where and accurate to the tool poverty growth by gauge Saatli, of at VF Staf area and our VF VF f