Date for the Signing of the Credit Agreement between The Asian Development Bank and The Azerbaijani Bank Respublika Defined
Azerbaijan, Baku / Trend corr I. Khalilova / On 17 December, the Asian Development Bank (ADB) and the Azerbaijani joint-stock commercial Bank Respublika will sign an agreement, on the allocation of a subordinated credit totalling $10mln, Bank Respublika reported on 14 December. The credit will be allocated with the libor+ margin interest rate, for 7 years.
"Interest rates for subordinated credit in the world fiscal markets vary about 10%," a source at the Azerbaijan bank reported.
The signing ceremony will take place within the framework of the visit of William Williams, the ADB Director in the Private Sector Affairs to Azerbaijan, which begins on 14 December, the ADB administration reported.
The credit will be intended for the second level capital and therefore Bank Respublika can use the funds freely. In the priorities of the bank, the funds will be used for financing of the micro entrepreneurship, the small-scale and the middle-scale entrepreneurship, as well as for the customer crediting.
Taking into account this credit, the ADB's portfolio on Bank Respublika will total $15mln. The first credit ($5mln) was allocated in the beginning of 2007, and the funds have been already utilized in the trade financing, and in the development of the small-scale and the middle-scale entrepreneurship.