EBRD Plans to Issue Loans in AZN
Azerbaijan, Baku, 21 October / corr Trend N.Ismayilova / "The European Bank for Reconstruction and Development (EBRD) is eager to issue loan in the Azerbaijani market in AZN, Valeriu Razlog, deputy head of the Baku Office of EBRD, said. He was in Baku to attend a workshop on the project on Support to increase of export potential and rivalry capability of privatized enterprises.
"To issue loan nominated in AZN there is a need for interbank market in the country, Razlog said. Our bank [EBRD] is eager to apply this system in Azerbaijan, whilst an interbank market has not yet formed in the country.
Presently, the bank issue loans in USD, euro, rubles and other regional currency units.
The EBRD has financed 77 projects in Azerbaijan, investing $700mln. The estimated cost of these projects comprises $2.6bln. The bank invested $1.9bln in the projects through additionally attracted funds.
In 2008 the EBRD approved ten projects with the total budget of 25mln euro, covering different fields, including finance, communication and tourism.
The bank considers the possibility to finance 18 projects totaling 140-180mln euro in Azerbaijan in 2008. Eight of them are small projects directed towards financing entrepreneurs, though two or three are related to the development of business-activities. Nearly 60mln euro is planned to be spent on strengthening banking sector. They envisage supporting small and medium business, mortgage crediting, micro finance.
Azerbaijan is an EBRD member since 1992. During the period of cooperation almost all infrastructure project in Azerbaijan are carried out with the EBRD's participation.
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