The EBRD is supporting the expansion and diversification of Bank of Baku with a $5 million co-financing facility Bank of Baku was established in 2005 as a result of the merger between two local private banks and is now Azerbaijan's seventh largest bank by assets, Trend reports with reference to the statement of the EBRD.
The co-financing facility will be used for loans to private Azeri companies. The EBRD will participate in sharing the risks.
Aygen Yayikoglu, head of the EBRD Baku office, said the funding for Bank of Baku underpins EBRD strong support in Azerbaijan for the development of private banks and the promotion of private sector. Longer-term finance for private banks is still scarce and private companies have only limited access to loans and other finance. Strengthening Azerbaijan banking sector will benefit the whole economy.
Afgan Isayev, VP of Strategic Planning and Development said: On behalf of Bank of Baku, I would like to extend our deepest appreciation and gratitude to EBRD for its continuing contribution to the development of our bank, banking sector and the economy overall. This particular initiative will help us to further stimulate the growth of our larger corporate clients and concentrate our efforts on financing non-oil related sectors of the economy.
To-date, the EBRD has signed 54 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.