Agreement on allocating loan of $5 million between KFW and ABMF to be made in first decade of January

Business Materials 22 December 2005 15:47 (UTC +04:00)

In early January 2006 a loan agreement will be made between the Azerbaijan’s Bank for Micro-financing (ABMF) and the German Bank for Reconstruction KFW on opening the credit line to the Azerbaijani bank in the amount of $5 million, the ABMF Board chairman Tomas Engelhardt told Trend. The loan for the Azerbaijani bank has been endorsed by the German bank in October 2005.

The first payments of the credit line KFW will start in February, as the bank has enough credit resources so far, Engelhardt noted. The funds will be received in several tranches and as needed. The credit line is designed for the support of the micro and small business development.

The period for the loan issuing is 6 years, and its use is to be finished during 2006. The loans for each borrower may vary from $100 to $125,000.