Azerbaijan's Entrepreneurship Development Fund plans to raise some funding from ADB and EBRD 

Azerbaijan's Entrepreneurship Development Fund plans to raise some funding from ADB and EBRD  The Entrepreneurship Development Fund of Azerbaijan (EDF) plans to raise some funding from international financial institutions, such as Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD), Report informs, citing S
Finance
November 5, 2022 10:20
Azerbaijan's Entrepreneurship Development Fund plans to raise some funding from ADB and EBRD 

The Entrepreneurship Development Fund of Azerbaijan (EDF) plans to raise some funding from international financial institutions, such as Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD), Report informs, citing S&P Global Ratings, which today assigned its 'BB-/B' long-and short-term issuer credit ratings to the Fund.

"But we do not expect it will account for a sizable share of funding. We view liquidity as adequate; cash and government securities accounted for about 9% of total assets at mid-2022," S&P Global Ratings said.

The Fund's main income source is 1% interest income on loans to financial institutions, which should cover its operating expenses. An additional source of income is short-term investments in local government bonds and interest income on cash accounts in other banks.

"EDF provides loans in Azerbaijan manats with a 1% interest rate to about 40 domestically operating commercial banks and credit unions to further lend to entrepreneurs at 5%, which is significantly below the market rates and enables entrepreneurs to borrow at affordable rates," S&P says.

EDF funds itself through capital and has no outstanding debt. New loans are funded through principal and interest repayments on maturing loans and the Fund's own capital.

EDF's assets totalled 828 million manats ($487 million) as of mid-2022.

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