Baku, Azerbaijan, Oct. 2
By Eldar Janashvili – Trend:
The International Finance Corporation (IFC) and Azerbaijan’s Bank Respublika OJSC signed an agreement aimed at improving the management of currency risks of the Azerbaijani bank, Trend reports on Oct. 2 referring to Bank Respublika.
The agreement will allow the bank to insure its customers from currency risks and facilitate the access to the financial resources in local currency.
According to the terms of the agreement between Bank Respublika and IFC, currency swap transactions will be conducted in accordance with the General Agreement of the International Swaps and Derivatives Association (ISDA). This will allow the bank to hedge the funds denominated in US dollars and better manage assets and liabilities, as well as provide clients with the access to long-term financing, assisting local enterprises in developing and creating new job places.
"The agreement with IFC allows the bank to expand financing of its customers in local currency on more favorable terms," Chairman of the bank Tariyel Ismayilov said.
"We will continue to strive to help Azerbaijan use the opportunities of its private sector and this agreement with our long-standing partner, Bank Respublika, is part of this strategy,” IFC Vice-President of Economics and Private Sector Development Hans Peter Lankes said.
“This strategy also corresponds to Azerbaijan’s plans to diversify the economy to ensure the growth of the non-oil sector," he added.
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