Azerbaijan, Baku / Trend corr. I.Khalilova / The Council of Directors of the Asian Bank of Development (АBD) approved the subordinated credit in amount of $10mln for the Azerbaijani Bank Respublika, Akshin Amirov, the director of the Department on risk management of Bank Respublika, said. The credit is allocated for eight years term on libor+ margin rate.
"The rate on subordinated credits made up 10% in world markets," Amirov said.
The funds of the credit will be included in capital of the second level. Taking into consideration the priorities the bank can utilize micro, small and medium enterprise for financing.
The credit agreement is expected to sign in the near future. Bank Respublika is planning to receive the funds by the end of the year.
Taking into consideration this credit line the portfolio of the ABD on Bank Respublika constituted $15mln. The first line in amount of $5mln. The credit funds were envisaged for trade financing and development of small and medium entrepreneurship.