German DEG Issues Mortgage Lending to Azerbaijani Bank
Azerbaijan, Baku, 28 November / Trend / Azerbaijani Bank Respublika (BR) and German DEG investment company signed a new $12.5mln loan agreement, the bank said.
Loan agreement was concluded for the term of eight years which enables to increase resource base of BR and increase degree of diversification of resources on the long-term basis. Funds will be directed at financing of mortgage operations under the agreement.
Signing of big loan agreement with DEG indicates successful work of Bank Respublika and high confidence in the bank by recognized international financial organizations which is especially remarkable against a background of current global economic crisis, the bank said. The agreement is evidence of dynamic development of Bank Respublika, despite of global economic situation.
BR, which has functioned since 1992, is one of key banks of Azerbaijan. Two German large financial organizations - DEG, member of KfW bank group and SIDT, member of Sparkassen-Finanzgruppe with stock package comprised of 25% + one share.
Bank Respublika has long-term rate of deposits in national and foreign currency at level of B2 with forecast 'stable' from Moody's Investors Service international agency.
On 1 November 2008, assets of Bank Respublika comprised AZN 386mln, loan portfolio - AZN 272mln, deposit portfolio - AZN 139mln. Bank Respublika's assets increased by 52 %, loan portfolio by 71 % and deposit portfolio by 25% over 10 months.
Presently, 30 branches and departments of BR function in Baku and regions.
Exchange rate for US dollar was AZN 0.8079 on 28 November.
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