The EBRD is increasing the availability of financing to private businesses in Azerbaijan with a new credit line to Bank Respublika for on-lending to micro and small enterprises (MSMEs).
The EBRD is providing a $6 million to the local Azerbaijani bank to help the bank diversify its funding base and develop further its portfolio of MSME credits.
Bank Respublika is the fifth largest bank by assets in Azerbaijan with a wide national coverage.
The EBRD loan will be used to finance investments and working capital of local businesses with medium and long-term loans, thus addressing the lack of credit available to micro, small and medium-sized companies in the country.
“Through this transaction the EBRD is building on its successful cooperation with Bank Respublika to increase the availability of financing and support the development of the private sector in the country”, said Nick Tesseyman, EBRD Business Group Director for Financial Institutions.
“We are very pleased with the signing of this agreement that shall provide support to our Bank in undertaking its role as a commercial bank with the SME and MSE focus, and also contribute to the overall growth of the Azerbaijan economy and the development of the small business sector”, said Chairwoman of Bank Respublika, Khadija Hasanova.
Previously the EBRD has supported Bank Respublika through a number of loans with the total amount of close to $27 million.
Since the beginning of its operations in Azerbaijan, the EBRD has committed over $1 billion across more than 90 projects in corporate, financial, infrastructure and energy sectors.