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EBRD, Bank of Baku support SMEs in Azerbaijan
USD1 million to help develop crucial sector
The European Bank for Reconstruction and Development is lending the Bank of
Baku, one of the largest private banks in Azerbaijan, $1 million to help
support small and medium-sized enterprises (SMEs) across the country.
The loan will help expand the Bank of Baku’s medium-term lending capacity to
SMEs in a market where banks’ and companies’ access to longer-term financing
is still limited.
Raymond Conway, the new head of the EBRD’s office in Baku, said that small
businesses in Azerbaijan need financing if they are to succeed, which is why
it is important to strengthen the lending capacity of local banks. He
described the SME sector as an essential engine for long-term growth in the
country.
Established in 1994, the Bank of Baku is one of the largest private banks in
the Caucasus, and offers a wide range of products and services in areas such
as consumer, commercial and international trade finance.
Mr Elshan Badirkhanov, at the Bank of Baku, said the Bank of Baku is very
pleased to have a partnership with the EBRD in supporting SMEs across the
country. Mr Badirkhanov, added that the Bank is pleased the EBRD chose the
Bank of Baku as one of its strategic partners in Azerbaijan, and said the Bank
is confident this partnership will further promote the development of the SME
sector, contributing to economic growth in Azerbaijan.
The loan is part of an overall $20 million facility through which the EBRD is
providing credit for SME lending to banks in Azerbaijan. As a participant in
the framework, Bank of Baku will benefit from credit training and assistance
provided by a consultant engaged by the EBRD and funded by the European
Union's Tacis programme.
The EBRD has a portfolio in Azerbaijan worth Euro 254.7 million in sectors as
diverse as banking, property, power, water, transport, SMEs and natural
resources.
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