ICD ready to support development of microfinance market in Azerbaijan
Baku, Azerbaijan, May 18
By Azad Hasanli – Trend:
Islamic Corporation for Private Sector Development (ICD) is looking for new partners among microfinance organizations of Azerbaijan, a source in the financial market told Trend.
The source noted that the ICD is interested in supporting the microfinance market of Azerbaijan through consulting services. One of the last such projects was cooperation with non-bank credit organization FINCA Azerbaijan.
"Today ICD is not ready to lend to microfinance organizations of Azerbaijan because of some nuances. Thus, the minimum amount of credit that the Islamic Corporation can issue within its mandate is $5 million. In turn, the NBCOs in Azerbaijan want loans in smaller amounts - $1 or $2 million," the source said.
As a result, at this stage it is appropriate to talk only about the provision of consulting services, the source noted. In addition, the Islamic Corporation is ready to help local companies in the development of new products in accordance with Sharia law and in the creation of new companies for Islamic microfinance, the source added.
In 2016, Azerbaijan, along with Kazakhstan, was selected as one of the pilot countries where ICD started working with microfinance organizations. Previously, the Islamic Corporation worked only with the banking sector.
The Islamic Corporation for Private Sector Development has been operating in Azerbaijan since 2003. In the country, ICD mainly finances small and medium-sized enterprises. The Corporation is also the founder of leasing company Ansar Leasing and co-founder of the Caspian International Investment Company in Azerbaijan.
ICD, founded in 1999, is based in Jeddah city of Saudi Arabia. Its main task is to finance the private sector of the member countries of the organization.
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