Azerbaijan, Baku / corr. Trend I.Khalilova / Under the new agreement worth $4.5 million, EBRD will provide Azerigazbank not only with guarantees covering the obligations of Azerigazbank in connection with international trade finance but also with cash advances to finance pre-export, post-import, local distribution and factoring activities of the bank. The ceremony of financing took place this week within EBRD annual meeting in Kazan.
A finance package from the EBRD will support Azerigazbank, one of Azeribaijan's leading private banks, in its drive to broaden its client base and to provide longer term loans for its small business clients. In addition to a $6 million credit line for on-lending to micro, small and medium-sized enterprises the Bank will also expand its cooperation with Azerigazbank under the Trade Facilitation Programme.
Kurt Geiger, EBRD Business Group Director Financial Institutions, said the new finance package will contribute to the evolution of a broadly-based banking system by strengthening one of the country's leading private banks. The credit line to Azerigazbank is expected to ease the access to finance for many micro, small and medium-sized enterprises. This in turn will contribute to the diversification of Azerbaijan's economy.