A credit line at $6 million have been opened to Bank Respublika within the mechanism of the joint co-financing facility between the European Bank for Reconstruction and Development and the Azerbaijani Bank, Trend reports referring to a message spread by EBRD. Bank Respublika, is a joint-stock company established in 1992. It is Azerbaijan's fifth largest bank by total assets.
The credit line will assist Bank Respublika to diversify its funding base, support asset growth and stimulate lending to small and medium-sized enterprises (SMEs). The co-financing facility will be used for sub-loans to local private companies in order to meet their larger financing needs.
This project will support financial intermediation and increase competition in the banking sector of Azerbaijan.
Aygen Yayikoglu, Head of the EBRD Baku , said the financing will contribute to the development of SMEs in Azerbaijan's non-oil sector and will underpin sustainable growth of both the national economy and help diversify Bank Respublika's portfolio.
Khadija Hasanova, CEO of Bank Respublika, said that EBRD has been extremely successful in terms of bringing innovations to the local financial market. These include SME credit lines, micro and small enterprises lending (MSEs), as well as the Trade Facilitation Programme (TFP). With the co-financing facility, the bank's business volume with EBRD will reach $18.7 million which is a good sign of Bank Respublika's rapid growth and successful cooperation between the two institutions.
To date, EBRD has signed more than 53 investments worth more than $900 million in Azerbaijan. The Bank is focused on the development of a strong financial sector, the support of micro, small and medium-sized enterprises and the development of the non-oil private sector.