ADB to allocate 1st loan to Azerbaijan’s private sector in early 2006

Business Materials 28 December 2005 13:58 (UTC +04:00)

The Asian Development Bank (ADB) and �Respublika’ joint stock-commercial bank completed negotiations on opening of loan lines for Azerbaijan. ”We have information about approval of loan lines on trade financing and development of small and medium entrepreneurship by ADB,” Asaf Zeynalov, the action chairman of the Board of Respublika Bank, told Trend.

The total sum of the loan will range from 50 to 60% of the statutory fund of the bank or approximately $5-6m.

Respublika Bank will be the first Azerbaijani bank received credit from ADB, despite the negotiations with Capitalbank, Azerdemiryolbank and others.

Zeynalov stressed that ADB’s terms of financing did not differ from the terms of EBRD and German investment company DEG considerably. ADB will allocate the loan for 5 years with interest rate libor+4% or libor+4.5%.

The loan agreement is expected to be signed in January 2006.