OREANDA-NEWS. The European Investment Bank (EIB) has started its lending operations in Azerbaijan by providing an intermediated senior loan of EUR 25 million to AccessBank to finance projects promoted by private small and medium-sized enterprises in Azerbaijan.

EIB is joining forces with AccessBank to facilitate access to long-term financing for local small and medium companies. AccessBank is a leading financial institution in providing financing to micro-enterprises and SME's in Azerbaijan. This transaction will support the development of the private sector and thus contributing to job creation and increasing living standards.

"This is a very important project for AccessBank. We strongly appreciate the support of our partner providing this large scale SME loan to AccessBank. At the same time we are proud that such a highly reputable financial institution as EIB has selected us as their partner in its first direct lending operation in Azerbaijan. The funds will make a significant contribution to the Bank's SME lending activities which are directed at supporting the expansion of the dynamically developing SME sector of the country", commented Michael Hoffmann, CEO of AccessBank on the transaction.

"This first ever EIB loan extended in Azerbaijan is designed to promote private sector development by improving the access of SMEs to long-term finance. This will help to strengthen the SME sector and contribute to implementation of the Azerbaijan's Government priorities to further diversify and modernise the country's economy", stated Wilhelm Molterer, EIB Vice-President.

This EIB loan corresponds to the objectives of the EIB External Lending Mandate, which focuses on the development of the local private sector, in particular support to SMEs, social and economic infrastructure and climate change mitigation and adaptation. The Framework Agreement between the Republic of Azerbaijan and the EIB entered into force on 15 January 2014, enabling the EIB to commence lending operations in Azerbaijan.

The European Investment Bank (EIB) is the long-term lending institution of the European Union and is owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.