EBRD ready to back development of banking sector in Azerbaijan EBRD President

Politics Materials 11 April 2006 12:39 (UTC +04:00)

Today the European Bank for Reconstruction and Development (EBRD) and Azerigasbank stock-investment bank signed an agreement held a sighing of an agreement on opening of a $4.5m credit line for the Azerbaijani bank. Thus, the portfolio of the bank was increased to $10m, Trend reports quoting Chingiz Asadullayev, the chairman of the Observation Board of Azerigasbank. $2.5m of the additional funds is allocated for trade financing, $1m support to the development of the small and medium entrepreneurship and $1m micro and small business. Micro and small business financing is a new program of the European Bank. Azerdemiryolbank, Respublika Bank and UniBank have been participating in the program since last year.

Azer Movsumov, the chairman of the Board of Directors of the bank, the EBRD plays an important role in the development of the SME. The cooperation between the EBRD and Azerigasbank started in 1998 with the delivery of support to the institutional development of the bank. In 1999 the bank was in an uneasy state, while the EBRD assisted the bank to come out of the crisis, Asadullayev underlined.

Development of the banking sector gives birth to rivalry among the banks ad it is the best opportunity to reduce the cost of credits, Jean Lemier, the President of the EBRD, said. . Azerbaijan is rapidly developing country with increasing incomes and continuing changes are required to reduce poverty in the country.

Along with other sectors we are also ready to support the banking sector, the President of the EBRD told Trend.