IFC to provide technical assistance to Azerbaijani bank

Business Materials 20 June 2013 16:08 (UTC +04:00)

Azerbaijan, Baku, 18 June / Trend A.Akhundov /

The International Finance Corporation (IFC) is preparing to provide technical assistance to Azerbaijani Bank Respublika to start lending to projects in the field of renewable energy and energy efficiency, IFC resident representative in Azerbaijan Aliya Azimova told Trend.

IFC allocated a loan to Bank Respublika to start financing projects in this area as well as to expand lending to small and medium enterprises (SMEs). A loan for $15 million is the first IFC project to receive funding for renewable energy and energy efficiency in Azerbaijan.

"We are preparing to sign a programme of technical assistance to the bank to prepare the portfolio of energy efficiency as it is the first in the Azerbaijan credit line of this kind. Negotiations on technical details are currently underway. We hope the bank's portfolio will develop following the provision of technical assistance," Azimova said.

According to her, the bank's potential and in general the potential of Azerbaijan for the development of this type of lending is high.

IFC will provide $14 million from a credit line of $15 million dollars and $1 million will be attracted in the framework of the Canada Climate Change Programme.

"The project will extend access to finance for small and medium-sized enterprises, stimulate the growth of non-oil sector in Azerbaijan and have a positive impact on job creation and economic development in the country.

"Additionally, the project will mark a positive sign for other commercial lenders as well as increase the interest of investors in the areas of renewable energy and energy efficiency in Azerbaijan. This will also help to establish criteria for the financing of this sector in the country," IFC said earlier.