Azerbaijan, Baku, July 20 / Trend I. Khalilova /
The Board of Directors of the European Bank for Reconstruction and Development (EBRD) is planning to discuss a new strategy September 15, which will cover 2011-2013, the EBRD's Baku branch said.
"The strategy will be published to receive comments by late September, and it will be approved by late 2010," the office said.
The EBRD's Board of Directors paid a visit to the country to discuss areas of cooperation under the new strategy.
Today, the bank continues to maintain its leadership role in the development of the banking sector of Azerbaijan. Most priorities for funding are non-oil sector of the country and agricultural business. It increases its participation in the financing of key transport, energy, infrastructure projects. The bank is already working directly and indirectly in the direction of private sector support and further development of private entrepreneurship.
In 2009, the EBRD invested a total of $ 232 million in nine projects in Azerbaijan. In 2010, the EBRD plans to sign 10 projects in Azerbaijan. In the first quarter, the bank signed an agreement on the allocation of $4 million to invest in equity with DataCELL - a leading wireless Internet provider in Azerbaijan, which operates under the brand Elcell.
The EBRD is considering a number of investments in agriculture, retail trade, as well as in the financial sector. The Bank also seeks to finance infrastructure development in Azerbaijan.
It aims to support sectoral reforms, financing of infrastructure projects, corporate and banking sectors.
The bank will work in both the public and private sectors, as well as continue the political dialogue with the government to improve the investment climate. It will finance key infrastructure projects, particularly in the energy sector.
The bank will work with local businessmen, bankers and foreign investors to diversify the economy, including rural development and improvement of standards at the international level to support the corporate sector.
The development of the banking sector will include activities aimed at further strengthening competition, promoting access to financial services in rural areas, and the development of non-bank financial services.
This year the bank plans to invest more than in 2009. In particular, the bank intends to double investments to support the banking and real sectors of Azerbaijani economy, small and medium enterprises, the electricity sector. It intends to make it through the long-term funding - ranging from 5 to 15 years.
The EBRD has invested 1.05 billion euros in the implementation of 114 projects in Azerbaijan. A total amount of 5,6 billion euros was allocated. The current portfolio of the bank now hits 663 million euros, 69 percent of which have been already mastered. Moreover, about 283.4 million euros have been paid off.