Asian Development Bank (ADB) selected two banks under its project for support of Azerbaijans private sector. ADBs Baku office representatives told Trend , ADB is planning to participate in their share capital. First agreement will be signed with Azerigazbank in May on purchasing 17.5% stock. This bank will be opened two credit lines, one for trade financing (L/C approval) in amount of $3.5mln and another for trade operations financing at $0.5mln.
Name of the second bank is not disclosed yet. In total ADB led consultations with 6-8
banks.
In general, ADBs project anticipates investing in capital share of banks and leasing companies, as well as opening credit lines. In this respect ADB consulted with leasing companies and Association of leasing companies, but made no specific decisions on this matter.
ADB considers cooperation with European Bank for Reconstruction and Development (EBRD) on financing trade operations. EBRD-partnered banks will be opened credit lines for trade financing and AB will continue their projects in case these banks will lack funds to execute them.
Total budget of the private sector aid project is $15mln. The project has been approved by ADBs Council of Directors in March 2006.