KfW grants technical aid to Azerbaijani banks for agro loaning
Azerbaijan, Baku, May 26 / Trend I. Khalilova /
German development bank KfW gives two Azerbaijani banks technical aid in the amount of €1 million to design methods of agricultural loans giving, KfW Baku office head Natik Abdullayev said on May 26.
"KfW cooperates with Bank Respublika, Azerdemiryolbank and non bank loan organization CredAgro within agro financing project of villagers in Azerbaijan. But it was made a decision about technical aid because of little experience of banks in agricultural loaning," Abdullayev said.
Cost of agricultural project with KfW hits €6 million; 2 million has been allocated to Bank Respublika and CredAgro. Loan agreements have been signed with them.
There is delay with signing of the agreement with Azerdemiryolbank as German bank considers necessary to prepare it for this process. This bank will get loan in the amount of €2 million.
The first agreement was signed with CredAgro. Delay with conclusion of agreements with banks was connected with little experience of banks in this sphere. CredAgro specializes in its activity on agro financing.
German bank allocates funds as subordinated loans. Though these loans enter the capital of the second level but their funds will be designated for loaning of villagers in regions.
Sheki-Zagatal and Gakh will be covered at the first stage.
Terms of loans will be similar with terms of financing of banks via German-Azerbaijani fund.
CredAgro was established in 2000 by the international humanitarian organization ACDI-VOCA. The authorized capital of the organization hits $5,000 but joint capital - 7 million manat.
Presently, CredAgro is oriented on financing of projects in regions and covers 27 regions. It established 9 representations and has supporting offices. Spheres of loaning include agricultural loaning, financing of trade operations, infrastructure, leasing, consumer loaning except for mortgage.
Azerdemiryolbank OJSC launched its activity on October 6, 1989 as Azzheldorbank. Azerdemiryolbank developed within 18 years and strengthened its position on the Azerbaijani bank market. Presently, Azerdemiryolbank OJSC enters five biggest banks of the country and has 29 branches and departments covering Baku and regions.
Bank Respublika launched its activity on May 22, 1992. One of the bank's priorities is to expand geography of its activity and number of branches including 19 branches and 9 departments.Do you have any feedback? Contact our journalist at [email protected]