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International Bank of Azerbaijan Signs Credit Agreement with JBIC, SMBC

Business Materials 13 June 2007 18:09 (UTC +04:00)

Azerbaijan, Baku / Trend corr I. Khalilova / The International Bank of Azerbaijan (IBA) has plans to sign an agreement regarding attracting credit at the amount of $20mln from the Japanese Bank for International Cooperation (JBIC) and Sumitomo Mitsui Banking Corporation (SMBC) on 13 June, the Deputy President of the IBA, Askar Mammadov, reported on 12 June.

According to Mammdov, each of the participants is ready to allot credit funds for an eight-year period. JBIC will allot $12mln and SMBC $8mln.

The funds are allocated for financing the import of Japanese goods to Azerbaijan. "I believe the import of progressive equipment to Azerbaijan from Japan will increase, owing to the development of Azerbaijani economics," Mamamdov said.

Earlier, JBIC proposed IBA financing through a mediator (Kazakh bank of TuranAlem). However, the Azerbaijani bank rejected such cooperation, as it had been directly cooperating with foreign banks thus far. The allocation of a credit line to the IBA was reflected in the protocol of the Azerbaijani-Japanese Committee on Economic Cooperation, which met on 22 November 2006 in Baku.

However, Sumitomo Mitsui Banking Corporation opened a credit line for the IBA in 2006 in the amount of $15mln. The agreement provides financing to import Japanese goods to Azerbaijan insured by Nippon Export and Investment Insurance (NEXI).

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