EBRD approves issuing loan to Azerbaijani bank

Business Materials 15 December 2011 20:54 (UTC +04:00)

Azerbaijan, Baku, Dec 15 /Trend N.Ismayilova/

The Board of Directors of the European Bank for Reconstruction and Development (EBRD) approved issuing $25-million loan to Azerbaijani AccessBank on Wednesday to expand access to financing of local micro, small and medium enterprises (MSMEs), EBRD Baku Office Head Neil Mckain told Trend on Wednesday.

"The loan agreement will presumably signed in three weeks," Mckain said.

The EBRD plans to provide a loan in two tranches, $15 million and $10 million. The loan is provided for five years at a two-year grace period.

The main goals of the loan are market expansion by increasing financial mediation and access to MSMEs financing, further growth in agricultural credit products and transfer of skills.

AccessBank was established to provide access to financial services for Azerbaijan's micro and small businesses and low and middle income households. AccessBank is 100% foreign owned by six shareholders, consisting of: the European Bank of Reconstruction and Development, the International Finance Corporation, the Black Sea Trade and Development Bank, KfW Development Bank - the Development Bank of the German Government (20% each), Access Microfinance Holding acting in the microfinance field as a strategic investor (16.5%), and LFS Financial Systems GmbH - a German consulting company (3.5%).