EBRD increases financing for Azerbaijani bank

Business Materials 7 July 2009 20:12 (UTC +04:00)

Azerbaijan, Baku, July 7 / Trend /

The European Bank for Reconstruction and Development (EBRD) increased the credit lines for trade financing for Azerbaijani Azerdemiryolbank by $4 million, EBRD said on July 7. In late last year, for this purpose the EBRD already allocated $3 million from the total credit line of $14 million, which was approved by the EBRD Board of Directors in May 2008.

On July 6, the EBRD and Azerdemiryolbank signed a new agreement to provide a credit line of $13 million for five years to support the Azerbaijani economy through providing loans to small and medium businesses.

To date, the EBRD has provided Azerdemiryolbank with over $50 million in equity investment and loans.

As of June 1, assets of Azerdemiryolbank totaled 208.48 million manat. Over the past 12 months, the figure rose to 17.7 percent.

Azerdemiryolbank has been cooperating with the EBRD since 1998 and is one of the first banks in Azerbaijan, attracting financial resources from EBRD. Despite the current economic situation in the world, the cooperation between the EBRD and Azerdemiryolbank increases.

"This agreement will allow us expanding the activities on micro-credits, as well as crediting small and medium businesses," said deputy chairman of Azerdemiryolbank's board Yusif Jabbarov.

The aggregate capital of the bank grew at the reporting date to 38.84 million manat, paid authorized capital amounted to 13.4 million manats.

Official rate on July 7 is 0.8042 AZN/USD.

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