Micro-Finance Bank of Azerbaijan Published its Activities in 2006
MFBA loan portfolio reached USD 47.6mln. at the end of 2006, having increased 3 times from the sum of USD 17.5mln. At the end of 2005, the number of clients having loans in MFBA was 5,400, and at the end of 2006 this quantity reached 16,300, Trend reports. The size of the credits disbursed to clients in 2006 made UP AZN 59.4 mln. (USD 68.2mln.). In comparison with 2005 the given indicator has increased up to AZN 34.6mln. (USD 39.7mln.) or BY 140%. Within four years MFBA has disbursed nearly 40 thousand loans totaling to USD 115 mln., the average loan size being not less than USD 3.000.
Thus, MFBA does the huge contribution to the development of Micro-, Small and Medium-sized Enterprises, creates new workplaces and develops economy in Azerbaijan adhering to its mission. Such a rapid growth of the bank contributes to the opening of new workplaces for young experts. Only for 2006 the Bank has involved 250 new young employees and for many of them it was the first work experience after they graduated universities. According to the indicators for the end of December, 2006 the total sum of actives of the Bank had made AZN 48,4 mln. (USD 55,6 mln.) and the growth of the general actives in comparison with the beginning of this year had grown 2,5 times and came up to AZN 29,4 mln. (USD 33,8 mln.) or 155%. Microfinance Bank of Azerbaijan has been operating in Azerbaijan since 2002. At the beginning of the year there had been 6 branches of MFBA in Azerbaijan and in the year of 2006 4 more branches opened, thus the number of the branches of MFBA has reached 10 in Baku, Sumgait, Ganja, Sheki and Lenkoran
. In January, 2007 the eleventh branch in Baku has been opened. The network of branches of MFBA will cover the majority of regions of Azerbaijan. Alongside with high financial parameters, MFBA during the whole year actively worked on the expansion of products. A lot of new products and services have been presented to the Bank clients. GSM Banking, Visa International plastic card, new kinds of deposit and money transfer services must be mentioned among them. The network of ATMs and POS-terminals has been expanded as well. Except for the new products, only for the fourth quarter of 2006, several credit lines were opened for a total sum of USD 14,5 mln. with various international financial institutions, such as Asian Bank of Development, Financial Fund Triodos, Oikocredit, Global Microfinance Facility, etc. All means of these credits have been allocated for provision micro-, small and medium-sized entrepreneurs and businessmen with loans in Azerbaijan.
It must be noted that the Microfinance Bank of Azerbaijan has got the 100% foreign capital and it is owned by five international organisations, including the BSTDB, the European Bank for Reconstruction and Development, the International Finance Corporation, KfW Development Bank and LFS Financial Systems.