...

ECO Bank to boost financing of SMEs in Azerbaijan

Business Materials 28 February 2018 14:28 (UTC +04:00)

Baku, Azerbaijan, Feb.28

By Leman Zeynalova – Trend:

The ECO Trade and Development Bank (ETDB), headquartered in Turkey’s Istanbul, intends to expand its financing programs in favor of small and medium-sized enterprises (SMEs) in Azerbaijan, a source in the bank told Trend.

“By cooperating with financial intermediaries, ETDB intends to support Azerbaijan’s financial sector and further expand its financing programs in favor of SMEs and trade finance. Moreover, ETDB would put all its efforts to contribute and partnership towards financing small and medium scale projects to contribute the dynamic and balanced pace of development in the country,” said the source.

The source noted that the total disbursement level of the Bank in Azerbaijan reached to $6.83 million by the end of July 2017 and the operations of the bank in Azerbaijan are expected to grow over the coming years.

“Specifically, for diversification of economy, the ETDB will provide support for implementation of development projects in various sectors including agriculture, energy, rural infrastructure, transport, transit and logistical infrastructure, manufacturing, tourism, etc., foster trade finance and support development of small and medium-sized enterprises,” said the source.

Moreover, realization of projects on public-private partnership would be other focus areas for the bank in its engagement with Azerbaijan, added the ETDB representative.

Since finance demand for micro, small and medium-sized enterprises (M-SME) is still higher than the actual supply, the ETDB would contribute for the development of M-SME segment in Azerbaijan through local financial institutions - banks and micro finance institutions (MFIs), noted the source.

ETDB representative pointed out that the bank will also consider the options to find suitable partners to support the development of non-bank financial sector as well.

“The ETDB executed its first SME transaction of $3 million and it expects to book more transactions as new financial institutions become partner,” added the source.

The ECO Trade and Development Bank is a regional multilateral development bank established under the auspices of the Economic Cooperation Organization (ECO) to promote socio-economic development and intra-regional trade amongst its member states.

The ETDB was established in 2005 with its headquarters located in Istanbul, Turkey. The bank started its operations in 2008.

Azerbaijan became a member of the bank with a 2.98 percent share in 2013.

---

Follow the author on Twitter: @Lyaman_Zeyn

Tags:
Latest

Latest