IFC, TuranBank sign loan agreement
Azerbaijan, Baku, June 21 / Trend, N. Ismayilova /
The International Finance Corporation (IFC) and the Azerbaijani bank TuranBank signed a loan agreement on Tuesday to provide funding worth seven million dollars in lending to micro, small and medium enterprises (MSMEs).
The agreement was signed by the TuranBank chairman Nazim Sadikhov and IFC Senior Manager Edward Strawderman.
"This credit line will allow the bank to increase micro, small and medium lending across the country, as well as improve the financial state of the bank," Strawderman said.
He said the improvement of corporate management by the bank and risk management practices are key factors in allocating this loan. The loan is allocated for a period of five years.
The IFC loan will be directed to support the growth of MSMEs funding amount in the bank's portfolio in existing branches, as well as new branches in cities and rural areas. TuranBank has 11 branches operating in Azerbaijan.
TuranBank was established in 1992. The bank has 25 shareholders, five of which are legal entities (21.8 percent) and 20 physical entities (78.2 percent).