Azerbaijan, Baku, Aug.7 / Trend, A.Hasanov /
The European Bank for Reconstruction and Development (EBRD) is providing additional funds for loans to small businesses with a loan of up to US$ 10 million to AccessBank Azerbaijan, EBRD said in its press release on Tuesday.
"The EBRD's funds will help AccessBank Azerbaijan to expand its MSME (micro, small and medium-sized enterprise) lending portfolio in the regions outside of Baku with a particular focus on agricultural lending," the press release says.
It is already second deal of such type in 2012. In April, the EBRD allocated a loan worth $15 million to AccessBank for similar purposes, the press release says.
AccessBank is the leading provider of financial services to MSMEs in Azerbaijan with MSME lending currently accounting for 90 per cent of AccessBank's loan portfolio. It is also the seventh-largest bank by total loan portfolio and the highest-rated bank in Azerbaijan.
In this country, the EBRD focuses on promoting small private businesses and developing the banking and non-oil sectors of the economy. To date, the EBRD has committed over US$ 1.5 billion in various sectors of the Azerbaijani economy in about 120 projects.
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% per each), Access Microfinance Holding acting in microfinance field as a strategic investor (16.5%), and LFS Financial Systems GmbH - a German consulting company (3.5%).