IFC Approves $10mln for Azerbaijani Non-Bank Credit Organization
Azerbaijan, Baku, 27 June / corr. Trend I. Khalilova/ The Board of Directors of the International Finance Corporation (IFC) has approved $10mln for CredAgro non-bank credit organization of Azerbaijan, a source in the organization said. The chief aim of the IFC project is to support CredAgro by long-term financing which will promote micro, micro and medium crediting by the organization.
The project is divided into two parts: the main loan worth $6mln with some $4mln granted as a subordinate loan which includes share in the capital of CredAgro. The non-bank organization is expected to be granted the second subordinated loan from the German bank of development KfW which will be spent for development of agriculture.
CredAgro expects to sign loan agreement with IFC within the next few days.
The total volume of the loans granted to CredAgro so far makes up $30mln. CredAgro, as a non-bank organization works with a restricted license, therefore it carries out financing out of the proceeds of the secured loans. CredAgro cooperates with 15 international financial organizations, foreign investment funds and other investor including EBRD, the Swiss micro-finance fund Dexia / Blue Orchard and others.
The current credit portfolio of Credagro makes up AZN44mln and it is expected to reach AZN50mln by the end of 2008.
The only founder of CredAgro is international humanitarian organization ACDI-VOCA who established non-bank credit organization in Azerbaijan 8 years ago. The authorized capital stock of the organization is $5,000 with aggregate capital of AZN7mln.
At present, the activities of CredAgro focus on financing projects in the regions and it covers 27 regions. The Bank has established 9 representations and several back offices. The Bank finances various spheres including trade operations, infrastructure, leasing and consumer crediting. The credit is granted for CredAgro with 36% interest rate annually for 3 year term.
The official exchange rate of dollar is 0,8128 AZN/USD.
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