Financial Crisis not to Affect Borrowings of Azerbaijani Bank

Business Materials 7 August 2008 20:39 (UTC +04:00)

Azerbaijan, Baku, 6 August / corr. Trend I.Khalilova / The Micro Finance Bank of Azerbaijan (MFBA) expects doubling of external debts by the end of 2008, Andrew Pospilovski, the general manager of the bank, told on 7 August.

In the first half-year, the bank attracted foreign credits totaling $45mln, whereas over last year the bank borrowed $60mln in total. In general, the credits attracted by the bank totals $142mln.

Although as a result of global financial crisis, the access to the foreign loans limited, and investors began to more selectively approach the borrowers on the developing markets, yet the MFBA has not faced problems with attraction of loans.

"The image of bank, and now the rating by Fitch Ratings make it possible for us to not only find investors, but also they establish the cost of money on borrowings for us not higher than this was in 2007," said Pospilovski. 

This the rate of libor connected still with the fact that fell from 5 percent year ago to 3 percent.

It is linked with the issue that the libor rate decreased from 5% to 3% a year ago.

Fitch Ratings has assigned Azerbaijan-based Micro Finance Bank of Azerbaijan (MFBA) ratings of Long-term Issuer Default (IDR) 'BB+', which is considered the highest level amongst the private financial institutions of Azerbaijan.

The Micro Finance Bank of Azerbaijan (MFBA) was opened in Baku on 29 October 2002. It is a closed type, joint-stock bank, owned by six shareholders: the European Bank for Reconstruction and Development, the International Finance Corporation, the Black Sea Trade and Development Bank, the German government's development agency KfW Development Bank, German consulting company LFS Financial Systems GmbH, which is also responsible for the management of the Bank, and microfinance consultants Access Holding.

MFBA was established in 2002 as a bank specialising in microfinance lending. Other shareholders of MFBA are Black Sea Trade and Development Bank (20%), Access Microfinance Holding (16.5%) and LFS Financial Systems GmbH (3.5%).

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