EBRD & Unibank sign an agreement on co-financing

Business Materials 19 December 2005 18:50 (UTC +04:00)

Raymond Convey, the representative of European Bank for Reconstruction and Development (EBRD) in Azerbaijan, and Faig Husseynov, the chairman of the Board of UniBank, signed an agreement on the program of joint financing of local borrower, Trend reports.

According to Husseynov, EBRD opens $5m credit for use during 2 years and repayment of credit in 5 years.

�Under the program UniBank and EBRD will equally finance big projects. EBRD allocates fund with the rate not exceeding 0.5% of its standard rate. Unibank will set the rate for borrowers in accordance with the market rates or mutual agreement with borrower. Co-financing is a new product for Azerbaijan and I hope that there will be requirement of it in the financial market,” Husseynov stressed.

Convey noted that the projects will be financed from 4 to 5 years within the program.

The program is aimed at the joint crediting of big projects by EBRD by not over 50%, if other term is not agreed with the European Bank. EBRD will receive the as much profit as UniBank. The fund may be used in financing of medium-term and long--term projects, investment programs for modernization, expansion and diversification of industry and production enterprises. Banks are equally responsible for delay and defaults by borrowers. The applications will be approved jointly with the EBRD experts.