ADB signs agreement with five Azerbaijani banks
Azerbaijan, Baku, April 29 / Trend N. Ismayilova /
On Wednesday, the Asian Development Bank (ADB) signed the agreement with five Azerbaijani banks within expansion of its program to promote trade finance (TFFP). Leading expert on investments in the Department of the ADB private sector Steven Beck paid a one-day visit to Baku to sign the agreement.
Agreements were signed with Access Bank, AGBank, Bank of Baku, DemirBank and Bank Respublika.
"This is an important tool for the development of trade of Azerbaijani entrepreneurship", Access Bank general manager Andrew Pospielovsky said. He said that the Asian Development Bank has provided Access Bank with guarantees for trade finance. These volumes can be increased.
The amount of the revolving loan was increased by $1 million - up to $5 million for Bank of Baku within the agreement with the ADB. The limit was preserved for trade financing at the same level - $2 million.
A revolving credit was doubled up to $1 million for AGBank. The agreement on trade financing, which was signed four years ago, has been updated. The limit of guarantee was maintained, as before, to the amount of$3 million.
DemirBank joined the program TFFP. A credit line amounting to $4 million was opened for it. About $3.5 million are provided for trade finance, and $0.5 million - as a renewable credit.
The agreement, envisaging allocation of a loan worth $1 million, was signed with Bank Respublika.
From 2006-2008 the agreements were signed with four Azerbaijani banks - Access Bank, AGBank, Bank of Baku and Bank Respublika under the TFFP. Financing worth $ 10 million was opened for them.
Officials of ADB's private sector made a visit to Azerbaijan, Mongolia and Uzbekistan to discuss the possibilities of expanding its program to promote trade finance (TFFP) for Central Asia in October 2009.
The ADB's program worth $1 billion envisages funding and guarantees to the international banks and the developing banks of member-countries to support trade in developing countries. In 2009 the volume of trade financing operations increased by 250 percent and amounted to $1.9 billion.
The Asian Development Bank announced plans to increase the number of participants among Azerbaijani banks in Trade Finance Program.
The ADB has begun to implement TFFP in 2004, but expanded it to the current amount March 31, 2009, in response to the demand for support in trade financing. As TFFP portfolio can be extended and time of its execution can be delayed, the program can allocate up to $15 billion in support for trade finance by the end of 2013.
The increasing number of Asian and international banks, participating in the program, according to the Asian Development Bank's expectations, will continue to grow during 2010.