IFC and Azerbaijan Bank Define Initial Terms of Signing a Credit Agreement

Business Materials 15 January 2007 12:01

The International Finance Corporation (IFC) and Rabitabank plan to conclude an agreement on opening a new credit line at the beginning of February, 2007. Rabitabank informed Trend that at present technical phase of the agreement is to end this January.

Term of signing depends on the approval of a credit at the IFC Board of Directors, which is expected to meet in January. IFC will allocate $2mln for Rabitabank within the framework of a program on support to small and medium-scale business in Azerbaijan. Terms for opening of a credit are currently being defined.

In 1997-2002 Rabitabank spent $800,000 of the fit credit of the Corporation. An agreement on opening of IMF second credit for the Bank was signed in Baku on 8 May 2003. In compliance with the agreement, it received a $1.2mln credit for 6 years with 2-year grace period at the annual rate of LIBOR+4.25%.

Rabitabank, which has functioned since 1993, holds 8 regional and 4 capital branches involved in rendering banking services for clients. Along with IMF the Bank actively co-operates with many international financial organizations. Presently it efficiently uses the $1.1mln-worth credit lines of the Islamic Corporation for Development, as well as the loans provided by the European Bank for Reconstruction and Development.