Azerbaijani bank stresses sharp increase in demand for micro-loans

Business Materials 9 June 2011 18:49 (UTC +04:00)

Azerbaijan, Baku, June 9 / Trend N. Ismayilova /

Azerbaijani UniBank will receive the first tranche of the credit from the International Finance Corporation (IFC) to the amount of $5 million till the end of the second half of the year, the bank said.

IFC and UniBank signed an agreement to provide the bank with credit line worth $ 10 million to finance micro, small and medium entrepreneurship in late May.

"The bank plans to get the first tranche from the IFC this month," the bank said. "It will be spent on microcredit. The second tranche to the amount of $5 million will be granted to the bank in autumn. Its position will depend on the results of placing the first tranche."

The bank said that today there is a sharp jump in demand for microcredit. A portfolio on microcredit of the bank tripled over the last year. As of June 1, it reached 9.3 million manat.

The number of loans increased from 2,700 to 5,000.

The total amount of the loans borrowed by the bank hits about 90 million manat.
Unibank was established on Oct. 15, 2002 as a result of a merger of the two advanced MBANK and PROMTEKHBANK private commercial banks. Unibank is a universal finance and credit institution offering retail and corporate services.

The shareholders are financial institutions such as the European Bank for Reconstruction and Development (15.1515 percent) and the German Investment Corporation DEG (8.3333 percent).