Azerbaijan, Baku, May 18 / Trend , N.Ismayilova/
For 17 years, the European Bank for Reconstruction and Development (EBRD) has allocated 865 million euro to finance projects in Azerbaijan, said bank's annual report.
In 2008, bank's investment in the country hit 81 million euro, while the figure was 122 million euros in 2007.
Three credits through the mechanism of secondary loan cofinancing (MSLC) in the amount of 11 million euros were granted to Azerbaijan, Georgia and Moldova.
Through this mechanism, bank-participates in loans which are allocated by partner banks, which would be too large for a bank-partner, if it would finance them independently. In addition, this mechanism allows banks to avoid risks and liabilities associated with the provision of large loans to one borrower. MSLC is also a useful tool in that it allows banks in countries with transition economies to expand its customer base and enter new markets.
In 2008 the TFP financed 288 intra-regional transactions. These included the export of grain and food products from Kazakhstan, Poland, Russia and Ukraine to Armenia, Azerbaijan and Tajikistan or the export of machinery and equipment from Belarus, Estonia and Slovenia to Armenia, Russia and Uzbekistan. Other transactions included the export of pharmaceuticals from Georgia, Russia and Ukraine to Tajikistan and the export of canned sardines from Croatia to Serbia.
At the end of 2008 there were large-scale microfinance programs with commercial banks in 12 EBRD countries of operations: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, the Kyrgyz Republic, Moldova, Mongolia, Russia, Tajikistan, Ukraine and Uzbekistan.
In 2008, EBRD invested 358 million euros o projects of industry production. Most of the funds were invested to Russia (160 million euro) and Ukraine (93 million euro). Bank also invested to projects in Azerbaijan, Albania, Armenia, Georgia, Kyrgyzstan, Mongolia, Romania, Serbia, Uzbekistan and Croatia.
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