OREANDA-NEWS. December 17, 2010. The EBRD is continuing its support for the development of the real economy in Azerbaijan within its Multi-Bank Framework Facility for micro, small and medium enterprises (MSMEs), reported the press-centre of EBRD.

Under the framework, the EBRD extends loans to Azerbaijani partner banks for on-lending to individuals and private companies. The Facility increases financial intermediation in the country’s banking sector and facilitates the access of MSMEs to finance.

The EBRD is providing USD 3 million MSME loan as a second tranche to Bank Respublika for on-lending to private entrepreneurs and 8-year USD 6 million mortgage loan as a second tranche to be on-lent by Bank Respublika to private individuals as residential mortgage loans. The EBRD is also providing USD 1.5 million credit line under the Medium-Sized Co-financing Facility Framework.

“We have been cooperating with Bank Respublika since 2004. Over this time, the Bank became one of the EBRD’s most active partners in Azerbaijan. It was also the first bank to receive EBRD mortgage development financing. During this time over 30 small and medium enterprises were able to benefit from our joint lending,” said Francis Delaey, Head of the EBRD Office in Azerbaijan.

“Pursuing regional development with a focus on SME and retail financing by diversifying bank new products in Azerbaijan’s regions has been one of the Bank Respublika’s main strategies for 2011-2012.  The EBRD’s loan will be a great support to us in achieving our goals and strategies in this regard. It will also make small businesses more sustainable and create additional opportunities for economic growth in the country,” said Khadija Hasanova, Chairperson of the Executive Board at Bank Respublika.

The Azerbaijan Multi-Bank Framework Facility with a total of USD 6 million was signed in 2009 and planned for disbursement in two tranches. In addition, a mortgage loan agreement for a total of USD 10 million was signed in 2008, which is used to assist in developing Azerbaijan’s mortgage market.

In Azerbaijan the EBRD invests in the enterprise, financial and infrastructure sectors to promote sustainable growth. Since the beginning of its operations in Azerbaijan, the EBRD has invested some EUR1.2 billion in about 120 projects, with over 60 per cent of the projects being investments into the development of the private sector.