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EBRD supports expansion of Bank of Baku
The EBRD is supporting the expansion and diversification of Bank of Baku with
a $5 million co-financing facility Bank of Baku was established in 2005 as a
result of the merger between two local private banks and is now Azerbaijan’s
seventh largest bank by assets.
The co-financing facility will be used for loans to private Azeri companies.
The EBRD will participate in sharing the risks.
Aygen Yayikoglu, head of the EBRD Baku office, said the funding for Bank of
Baku underpins EBRD’s strong support in Azerbaijan for the development of
private banks and the promotion of private sector. Longer-term finance for
private banks is still scarce and private companies have only limited access
to loans and other finance. Strengthening Azerbaijan’s banking sector will
benefit the whole economy.
Afgan Isayev, Bank of Baku’s Vice President of Strategic Planning and
Development, stated: “On behalf of our bank, I would like to extend our
deepest appreciation and gratitude to the EBRD for its continuing contribution
to the development of our bank, banking sector and the economy overall. This
particular initiative will help us to further stimulate the growth of our
larger corporate clients and concentrate our efforts on financing non-oil
related sectors of the economy.”
To-date, the EBRD has signed 54 investments worth more than $900 million in
Azerbaijan. The Bank is focused on the development of a strong financial
sector, the support of micro, small and medium-sized enterprises and the
development of the non-oil private sector.
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