Another int’l financial institution to start lending in Azerbaijani manats(Exclusive)

Finance Materials 16 April 2019 12:31 (UTC +04:00)

Baku, Azerbaijan, April 16

By Azad Hasanli - Trend:

The European Fund for Southeast Europe (EFSE) plans to start lending in Azerbaijan’s national currency in the second half of 2019, a source in the fund told Trend.

Azerbaijan, along with other countries of the Eastern Partnership program, has become one of the countries covered by financing in national currency, according to the source.

EFSE plans to allocate a total of 61 million euros for the Eastern Partnership countries, and 44 million euros of this amount were provided by the EU under the EU4Business initiative, while 12 million euros were provided by the German Federal Ministry for Economic Cooperation and Development.

Financing in national currency will help small and medium-sized enterprises (SMEs) and low-income households protect themselves from currency fluctuations and contribute to sustainable economic development in the region.

The EFSE was initiated by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. It aims to foster economic development and prosperity in the countries of Southeast Europe and the South Caucasus region.

As access to finance is a key success factor in developing the micro, small and medium enterprise segments, the EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing.