BAKU, Azerbaijan, June 28. A meeting was held between the Chairman of Central Bank of Azerbaijan (CBA) Taleh Kazimov and the Head of National Bank of Georgia (NBG) Koba Gvenetadze, last week, Trend reports.
The development of cooperation between the financial and banking sectors of the two countries was discussed during the meeting.
Last week it became also known that the current main portfolio of Black Sea Trade and Development Bank (BSTDB) in Azerbaijan supports small and medium-sized enterprises (47.5 percent), energy (35 percent), real estate (8.4 percent), consumer goods (4.8 percent) and industry (4.4 percent).
BSTDB has financed 39 projects in Azerbaijan worth over 0.5 billion euros in accordance with the investment priorities of the Azerbaijani government.
Additionally, the BSTDB will sign two new agreements with Azerbaijani banks. Loan funds will be provided to support trade finance (exporters and importers) and small and medium-sized enterprises in the country under these agreements.
Moreover, the provision of local currency financing in Azerbaijan is of great interest to BSTDB. This reduces the risks for clients and the entire financial sector. BSTDB already has experience in this sphere.
Bank also issued manat bonds using the infrastructure of the national funds market and worked with local financial institutions to raise local currency.
BSTDB is considering alternative options for gaining access to local currency, as demand from both financial intermediaries and corporate borrowers is strong.
Last week it became also known that the new World Bank project named 'Favorable business environment' was presented at the meeting of Azerbaijan's Working Group on Taxes and Accountability of the Commission on Business Environment and International Rankings.
It was also reported that the European Bank for Reconstruction and Development expanded its portfolio of projects in Azerbaijan.
The current loan portfolio of projects of the European Bank for Reconstruction and Development in Azerbaijan was estimated at 842 million euros as of May 1, 2022.
The majority of the project portfolio (724 million euros or 88 percent) is directed to investments in sustainable infrastructure, 70 million euros (eight percent) - to investments in industry, trade, and agricultural sector, and 31 million euros (four percent) - to investments in financial institutions.