Azerbaijan, Baku, August 31 / Trend I. Khalilova /
German-Azerbaijani Fund (GAF) expands the number of partner banks, which fall under the status of graded banks, and now three of the nine agents of the Fund have such status, the technical manager of the German-Azerbaijani Fund (GAF), through which the LGF will operate, Andreas Franke said on August 31.
"This status frees the representatives of the Fund from participating in the bank's loan committee making decisions on operations at the expense of GAF, said Franke. - We only check audit reports and in general, the financial statements of these banks."
According to Franke, today, Bank Respublika, Bank of Baku and partly UniBank (for small loans) have the status of graded banks. AGBank is also expected to have this status over the next six months.
GAF partners are of Bank of Baku and Unibank (since March 2001), January 2003 - Parabank and Bank Respublika, September 2004 - Azerdemiryolbank and AGbank, December 2006 - Rabita Bank and Mugan Bank, February 2007 - Nikoil Bank.
Financing by the Fund started in 2001 at the expense of a loan from KfW. The German bank provided two tranches of €8.7 million to GAF. Spending them and the loan of EBRD completed, and therefore, currently the local banks are financed from the revolving account. The European bank joined the financing through GAF within the mechanism of social framework financial services for micro and small enterprises in Azerbaijan (AMBF-MSE) in 2006.
Today, the maximum limit for a one-time loan from the LGF is €2-2.5 million for each bank.
The turnover in 2009 amounted to €5 million, and in general, throughout the year, this figure reaches usually €8-10 million, and this tendency has been held over the past eight years. The current portfolio of placement from the GAF varies from €11.5 million. By the end of the year, it will not exceed €12 million, Franke said.
Agreement on the establishment of GAF was signed in 1999, but the credit began to be provided in March 2001.
Official rate on August 31 is 0.8039 AZN/USD.
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