EIB is ready to expand portfolio in Azerbaijan
Baku, Azerbaijan, Feb. 5
By Maksim Tsurkov - Trend:
The European Investment Bank (EIB) and a number of Azerbaijani banks are negotiating over loan agreements, the deputy head of the Eastern Neighbours and Central Asia Department Jaani Pietikainen told Trend Feb. 4.
He attended the Azerbaijan Banking and Financial Forum in Baku.
"We are negotiating with several banks about delivering them loans for potentially interesting projects, namely, support for the development of transport infrastructure, industry, etc.," he said. "One of our goals is to participate in the economic diversification of Azerbaijan."
He said that Azerbaijan's banking sector is very attractive.
"EIB loans will be designed to reduce credit risks of local banks, as well as develop the SME sector," an EIB representative said. "It is important for the banks to deliver the reports on the use of funds as part of each project and conduct the audit. Moreover, we are considering the banks with a high level of total capital. When choosing our partners, we will be guided by these principles."
"One of the main objectives of the bank is to finance the agricultural sector," he said.
"We have already delivered two large loans for agricultural development in Moldova," he said. "At the moment, the EIB possible role in support for Azerbaijan's agriculture is being discussed."
The European Investment Bank is a relatively new player in Azerbaijan. A framework agreement with the Azerbaijani government has entered into force since January 2014. The first loan agreement was signed with AccessBank in the amount of 25 million euros in the country.
EIB was established in 1958 to finance the least developed regions of the European Economic Community, as well as new industrial areas or projects of common interest to the member-states of the common market and associated states.
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Edited by CN