- EBRD lending up to US$ 10 million to Unibank in Azerbaijan in local currency
- Proceeds will be lent on to local micro, small and medium-sized enterprises
- Loan agreement marks relaunch of partnership with Unibank
The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to US$ 10 million (€8.8 million) to Unibank in Azerbaijan in local currency. The proceeds will be lent on to local micro, small and medium-sized enterprises (MSMEs).
This transaction seeks to boost the competitiveness of Azerbaijani businesses by partnering with a robust financial intermediary. The EBRD’s agreement with Unibank will enable it to play a wider role in the development of Azerbaijan’s private financial sector.
The EBRD will also help Unibank to develop strategies, products and monitoring processes aimed at improving the efficiency of MSME lending. These measures will include the development of an environmental and social management system.
This agreement marks the relaunch of the EBRD’s partnership with Unibank, which is a key private financial institution in the country.
Nataly Mouravidze, the EBRD’s Head of Azerbaijan, said: “We’re delighted to relaunch our partnership with Unibank, which is a systemically important bank in Azerbaijan. Agreements like these are great for the economy. With this financial package, we’re supporting the development of local businesses, while also strengthening the lending capacity of the country’s financial sector.”
Heybat Gadirov, Deputy Chairman of the Management Board of Unibank, said: “Unibank’s cooperation with the EBRD traces back many years and we are very pleased to restore this productive partnership. At Unibank, we consider development of the SME sector and sustainable growth of the national economy among our strategic priorities. This collaboration will enable us to provide greater financial support to entrepreneurs. Raised funds will further strengthen Unibank’s SME lending strategy and contribute to the diversification of the national economy.”
The EBRD is a leading institutional investor in Azerbaijan, having invested around €4 billion in almost 200 projects across various sectors of the economy. The Bank’s renewed country strategy for Azerbaijan focuses on supporting the country’s non-oil sector and local lenders, as well as boosting investment in the green economy.