EBRD lends up to US$10m to Bank Respublika in Azerbaijan

The European Bank for Reconstruction and Development (EBRD) is extending a loan of up to US$10m (€8.86m) in local currency to Bank Respublika, one of Azerbaijan’s leading commercial banks and a longstanding partner of the EBRD. Bank Respublika will lend the proceeds on to micro, small and medium-sized enterprises (MSMEs) in the country.

This loan seeks to boost the competitiveness of the private sector by providing medium-term local currency funding to Azerbaijani businesses.

The majority of the proceeds will be lent on to MSMEs based outside the capital, with many located in rural areas across the country.

The transaction will benefit from a first loss guarantee under the European Fund for Sustainable Development Plus (EFSD+) programme, which is backed by the European Union (EU).

The EFSD+ financial inclusion programme is designed to empower MSMEs and foster their competitiveness and growth. The programme’s strong financial tools seek to encourage intermediaries to direct new lending to those firms that need it most.

Nataly Mouravidze, Head of EBRD in Azerbaijan said: “We are glad to continue our successful cooperation with Bank Respublika through this new loan agreement, which will further expand access to finance for SMEs in rural areas. Supporting inclusive growth and economic resilience in underserved regions remains a key priority for us.”

Tariyel Ismayilov, Chairman of the Management Board of Bank Respublika said: “The receipt of another loan from one of the largest international financial institutions – the EBRD, once again confirms the high level of trust in Bank Respublika from the global financial community. The funds raised will be directed toward the development of the real sector of the economy – a priority area for both the country and Bank Respublika, reflecting our strategic commitment to supporting sustainable growth.”

Bank Respublika is a longstanding partner of the EBRD and one of Azerbaijan’s leading commercial banks. It has a strong focus on the SME sector and financial inclusion, supporting the growth of local businesses across the country.

The EBRD is a leading institutional investor in Azerbaijan, having invested around €4bn 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.

Source: EBRD