BAKU, Azerbaijan, June 3
By Leman Zeynalova – Trend:
To support the SME sector development in Azerbaijan, the Black Sea Trade and Development Bank (BSTDB) continues working with Turanbank, its long-term partner, which is well-placed to channel funds to companies that are facing unprecedented period of volatility and COVID-related restrictions, the Bank told Trend.
“In 2019, Turanbank received our special local currency SME credit line of AZN 10 million. For the purpose, that time BSTDB issued a manat (AZN) denominated bond, which was the first local currency bond issued by a multilateral development bank in Azerbaijan. This year we are planning to extend another manat-denominated SME line to Turanbank, to enable local SMEs to benefit from the local currency funding,” said the BSTDB.
BSTDB recalled that it was one of the founders of Access bank, which is focused on financing SMEs and used to be one of the most successful banks in the country. “We have also helped Access bank to recover after the financial crisis and to return back to business. Apart from direct lending to Azerbaijani banks and enterprises, BSTDB also takes part in a number of regional equity funds established to assist SMEs in various countries, including Azerbaijan, such as SEAF Caucasus Growth Fund and ADM CEECAT Recovery Fund.
In the small to medium size enterprise sector, the Bank aims at attracting firms that may be newer or in underserved sectors or geographic regions which hold promise to create new employment and to generate new wealth. In order to reach out to the maximum number of SMEs, we mostly provide funding through well-established local intermediary financial institutions. Lending through intermediaries may also expand to key thematic categories such as energy efficiency, social inclusion, targeting of particularly impoverished or isolated areas (and groups), etc. as these hold the promise of generating significant positive externalities beyond the immediate benefits of the project financing,” said the BSTDB.
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