Baku, Azerbaijan, Sept. 4
By Anvar Mammadov – Trend:
Azerbaijan’s Rabitabank is ready to cooperate with other banks of the country in the process of issuance of syndicated loans to customers, Chairman of Rabitabank’s Board Elchin Gadimov told Trend Sept. 4.
Earlier it was reported that Rabitabank and Unibank made a joint decision to issue syndicated loans. The "Protocol of Intentions" was signed between the banks, implying the issuance of joint loans.
Gadimov added that Rabitabank is open to similar offers from other banks of Azerbaijan.
"This practice should be extended,” he said. “We are ready for similar offers from other banks of the country. I hope that this practice will be popular among other banks in the country and will be developed."
“There was always an interest in syndicated loans in the country's economy,” he said. "Today, our clients have a great need for big financing and banks have difficulty in issuing such big loans. But on the other hand, banks are afraid of taking on big risks on one project."
“These problems will be solved through the signing of this agreement,” Gadimov said. "The project will allow us to provide our big customers with big loans and on the other hand it will enable us to share risks between the two banks, thereby reducing their number for each of the two banks."
A syndicated loan is usually issued to business customers by two or more banks. As a result of such cooperation, both banks will be able to meet the needs of their business customers in big volumes. This also provides an opportunity for clients to implement bigger and longer-term development plans. Another purpose of such loans is to distribute the risks of the loan amount between participating banks.
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