ADB increases funding for Azerbaijani credit organizations
Baku, Azerbaijan, May 3
By Anvar Mammadov - Trend:
The Asian Development Bank (ADB) has approved funding in the amount of $ 120 million for three Azerbaijani credit organizations - Access Bank, Finca Azerbaijan non-bank credit organization and DemirBank.
These loans will be used to support the development of the agricultural sector and to improve the financial services for the micro, small and medium enterprises, the statement made as part of the 48th meeting of the ADB Board of Governors said.
This funding will help to some extent reduce the dependence of the country's economy from the oil and gas sector. These three financial institutions have drawn more than $ 215 million investments from ADB since 2005, the statement said.
"The investments, made in Access Bank, Finca Azerbaijan and DemirBank, demonstrate the support rendered by ADB to the financial sector development and diversification of Azerbaijan's economy," Director General of the ADB Private Sector Operations Department Todd Freeland said. "These loans, envisaged for agriculture, will be available for small farmers and agricultural facilities."
AccessBank was founded in 2002 by BSTDB, EBRD, IFC, KfW, the German consulting company LFS Financial Systems (LFS) and Access Holding.
The bank concentrates on lending to small and medium businesses. It has a wide branch network through Azerbaijan and employs 1,931 people.
FINCA Azerbaijan has operated in Azerbaijan since 1998. Some 33 branches and 33 sub-branches of the organisation operate in Baku and in the country's regions.
Azerbaijan joined the ADB on Dec. 22, 1999, the country's share in the bank's capital is 0.5 percent.
ADB's leading shareholders are Japan and the US (31.2 percent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent), etc.
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