EBRD provides Azerbaijani bank with financing package to enhance trade, small and medium businesses
Azerbaijan, Baku, Jan. 30 / Trend /
European Bank for Reconstruction and Development (EBRD) has provided "Muganbank" with a financing package of $6 mln. in order to ensure a continuous flow of credits to small and medium businesses in Azerbaijan and enhance Muganbank's trade facilitation activities in the country, the bank said today.
The financial package includes a credit line of $5 mln. for crediting of micro, small and medium businesses in Azerbaijan. Around $3 mln. of the credit line is provided in manat and 2 mln. in dollars.
"Muganbank" will also be provided with an additional $1 million facility under "Trade Facilitation Program" (TFP) for its trade finance activities in Azerbaijan. Thus, the total TFP facility for "Muganbank" will be brought up to $4 mln.
Regarding the new credit line, Chairman of the Board of "Muganbank" Elmir Hasanov stated that crediting of local small and medium businesses has become very topical due to continuous economic development in Azerbaijan.
Mentioning that this credit line is significant not only in terms of Muganbank's economic interests, but also for the business in the country from the macroeconomic point of view, the Chairman emphasized that the agreement "Muganbank" made with such respectable financial institution as EBRD within a joint work is a good evidence of high confidence.
It's worth mentioning that the EBRD funds will allow "Muganbank" to maintain sustainable micro, small and medium enterprises (MSME) lending activities, the core of its strategy, thereby addressing the high demand for loans from local entrepreneurs, and to increase the availability of trade financing to Azerbaijani companies, the message said.
The proceeds from the EBRD financing will be used to finance investments and working capital of local enterprises with medium and long-term loans as well as to guarantee cross-bordered transactions of private businesses.
Due to the cooperation in the last few years between "Muganbank" and EBRD, the total credit facilities provided by this financial organization to "Muganbank" have reached to $16 mln.
"Muganbank" OJSC, one of the well-known participants of Azerbaijani financial-banking sector has been functioning since 1992. The bank's 30 branches and 4 sub-branches across the Republic effectively serve customers with all types of banking products.