EBRD to Issue Two More Loans to Azerbaijani Banks in 2008
Azerbaijan, Baku, 28 October / Trend corr. N.Ismayilova / The European Bank for Reconstruction and Development (EBRD) plans to sign €43.5mln loan agreement with two Azerbaijani banks by the end of 2008, Francis Delaey, the head of the EBRD Baku Representation, told Trend . He did not publicize names of the banks.
The first agreement envisages issuing of €7.5mln to finance mortgages. The Eurobank will organize €36mln syndicated loan within the framework of the second agreement and €7.5mln of them will be financed by the EBRD.
"Our partners will issue the rest part as syndicates, Delaey said. Success of these syndicates will depend on size of our partner's wish to run risks. It is difficult to predict this under the current market conditions."
The EBRD has planned to issue about €60mln in 2008 to strengthen banking sector and these amount will be spent to support small and medium business, mortgage loaning and micro financing. The Eurobank has issued $29mln for AGBank and Azerdemiryolbank in spring. At present the Eurobank functions with eight banks in Azerbaijan.
Portfolio of the Eurobank's own financing in the Azerbaijani projects amounts $1bln since the beginning of its activity and the portfolio reaches $4bln with the co-financed projects.
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