Azerbaijani bank draws subordinate loan
Azerbaijan, Baku, June 12 / Trend /
The Azerbaijani Azerdemiryolbank which is one of Azerbaijan's giant banks signed an agreement the Netherlands Finance Development Company (FMO) to draw subordinate loan worth $7.5 million for 10 years on June 10, the bank said.
The Bank will direct these funds to increase the capital of the second order and favor further capitalization of Azerdemiryolbank. This long-term agreement will increase and diversify Azerdemiryolbank's resource base, as well as will become additional source to expand the bank's loan operations.
"Signing a giant and long-term agreement with one of leading international finance organizations on the backdrop of the current economic situation in the world testifies trust of the international finance markets to Azerdemiryolbank," Deputy Chairman of the bank's Board Yusif Jabbarov said.
Azerdemiryolbank and the Netherlands FMO cooperate since 2007. FMO also participates in two other international programs along with the European Bank for Reconstruction and Development (EBRD), German Investment Corporation (DEG) and the OFID Investment Fund of the OPEC. Under these programs, multi-million funds were issued to Azerdemiryolbank to expand loaning of small and medium-sized business in Azerbaijan. FMO joined shareholders of Azerdemiryolbank on Nov. 7 in 2007.
One of the country's first commercial banks Azerdemiryolbank was founded in 1989. The bank's shareholders also include giant international finance organizations, such as ЕБРР and FMO. The bank has 32 branches and department in Baku and the regions.