The joint stock commercial bank Rabitabank has completely used the credit line of the Islamic Corporation for the private sector development, the banks supervisory board chairman Zakir Nuriyev has told Trend.
The agreement on allocating the loan of $800,000 to the bank was signed between the Rabitabank and the Islamic Development Corporation in November 2004.
The loan reimbursement has not started yet, as under the agreement the repayment of the basic debt is delayed for 2 years. In this regard the funds repaid from the borrowers will be re-financed by the bank. $300,000 are available at the disposal of Rabitabank for refunding, which will be used during 1-2 months, Nuriyev noted.
The funds of the Islamic Corporations credit line are provided for financing small and medium entrepreneurship projects. Under the Corporations credit line conditions the size of the loan may vary from $100,000 to $800,000 and at least 20% of the project cost is to be financed by the borrowers own funds and respectively, up to 80% the bank may cover from the credit line resources.