OREANDA-NEWS. September 21, 2015. The European Investment Bank (EIB) is lending EUR 50 million to the International Bank of Azerbaijan to finance projects promoted by SMEs and midcaps in the country. The EU bank’s loan will support projects in the priority areas specified by the EIB external lending mandate, including the development of the local private sector.

EIB Vice-President Baranyay, responsible for lending operations in Azerbaijan, stated:
“I am pleased to sign this loan agreement today with the International Bank of Azerbaijan, the leading bank in the country. The EIB financing will enhance the access to finance for Azerbaijani SMEs and midcap companies, particularly in industry and services not related to the oil and gas industry, thus contributing to the diversification of the economy of Azerbaijan.”

Ulvi Mansurov, Deputy Chairman of the Board of the International Bank of Azerbaijan, said: “It is a great honour to launch this collaboration with such an esteemed institution as the EIB. We believe that this cooperation will bring benefits to the economy of Azerbaijan and help the International Bank of Azerbaijan to strengthen its position on the SME and midcap sector in the country. We look forward to achieving successful results through the implementation of the loan agreement  to the mutual satisfaction of our institutions.”

The operation will support the Azerbaijani Government's strategy to diversify the economy and contribute to increasing the share of GDP generated by the SME sector while fostering sustainable private sector-led growth, which is also fully in line with the EU’s cooperation strategy with Azerbaijan. The EIB funds will contribute to job creation and raise the living standards of the citizens of Azerbaijan.

This is the second loan the EIB has granted in Azerbaijan. In 2014 the EU bank signed a loan of EUR 25 million with AccessBank to support projects promoted by small and medium-sized enterprises in Azerbaijan.