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EBRD to help boost trade with Azerbaijan
Azerdemiryolbank has joined an initiative of the European Bank for Reconstruction and Development to assist local companies wishing to trade with companies abroad. Under its Trade Facilitation Programme, the EBRD will extend a $1 million facility to guarantee Azerdemiryolbank as an issuer of Letters of Credit and other similar trade-promoting instruments to support Azerbaijani enterprises in international trade.
The Trade Facilitation Programme promotes foreign trade with central and eastern Europe and the CIS. Through the programme, the EBRD provides guarantees to international and regional confirming banks. In so doing, it takes the political and commercial payment risk of transactions undertaken by issuing banks in the countries where the EBRD operates. The programme can guarantee any genuine trade transaction associated with exports to, imports from, and between the EBRD's countries of operations. More than 68 issuing banks in the Bank's region of operations participate in the programme, including one existing bank in Azerbaijan, together with about 177 confirming banks throughout the world.
George Krivicky, new EBRD Country Director for Azerbaijan, said the continued expansion of the Trade Facilitation Programme in Azerbaijan would help local private enterprises in accessing foreign markets. Azerdemiryolbank's participation in the Trade Facilitation Programme is not only good for Azerdemiryolbank - it is good for many Azerbaijani companies that will now find it easier to conduct international trade, Mr Krivicky said.
The cooperation between the EBRD and Azerdemiryolbank began in 1999 when Azerdemiryolbank received a credit line for lending to small and medium-sized enterprises. Today Azerdemiryobank provides a wide range of financial services both to companies and individuals, making it one the largest private banks in Azerbaijan.
The EBRD has a portfolio in Azerbaijan worth €330 million in sectors as diverse as banking, property, power, water, transport, SMEs and natural resources.
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