The European Bank of Reconstruction and Development allocates $3.5m credit to local private banks to enable small and medium-seized enterprises to gain access to open new jobs, the Baku Representative Office of the bank told Trend.
The EBRD grants $1.5m to Azerigazbank, $2m - to Bank Respublika to finance small and medium-seized enterprises. In 2004 this figure comprised $2m and $1m.Several months ago the European bank doubled an existing loan to Azerigazbank to $2m to promote trade, while similar facility for Bank Respublika was also doubled to $1m.
Kurt Geyger, the EBRD Business Group Director for Financial Institutions, noted that small and medium-seized enterprises were grass-roots for economic development and the Bank was ready to support the local banks working in the sphere. The lack of competitiveness and undercapitalization in the banking sector of the country could have serious long-term consequences on the economic development prospects. Therefore, the EBRD continues active cooperation with local banks to strengthen competition and provide more liquidity in the sector.
The EBRD is one of the largest investors in Azerbaijan, having committed to Azerbaijan over 574m euros.