EBRD gives Azerbaijani bank AZN loan worth $10 million

The European Bank for Reconstruction and Development (EBRD) has approved a senior unsecured loan of $10 million to Azerbaijan's Bank Respublika.

As Report informs with reference to the EBRD, the funds will be directed to lending to micro, small and medium enterprises (MSMEs) and will be provided in a single tranche.

The loan will be issued in the national currency - Azerbaijani manats - within the framework of the Financial Intermediary Facility (FIF). The main goal of the project is to expand the loan portfolio for MSMEs, including in rural and regional areas of the country. According to the program requirements, at least 65% of sub-borrowers must operate outside the capital.

The project aims to increase the availability of financing for private MSMEs in manats for the medium term, support financial institutions in developing innovative approaches to lending - from strategy to marketing. In addition, the project provides for strengthening financial inclusion by covering underserved market segments with high demand for financing.

For Bank Respublika, the project opens up the opportunity to expand its loan portfolio by attracting new and regional clients.

According to data as of February 28, the EBRD's current loan portfolio in Azerbaijan amounts to 1.086 billion euros, distributed across 33 projects. The main volume of the portfolio - 92% (994 million euros) - is directed to the development of sustainable infrastructure, 5% (52 million euros) - to the corporate sector, and 3% (40 million euros) - to financial institutions.

Overall, during the period of cooperation with Azerbaijan, the EBRD has invested more than 4.064 billion euros in the country, financing 196 projects.