Micro, small and medium-sized enterprises (MSMEs) in Azerbaijan will benefit from greater access to finance, as the European Bank for Reconstruction and Development (EBRD) is providing a US$ 13.5 million financing, in Azerbaijani manat, to Bank Respublika, a key local lender.
The first credit line, in the local currency equivalent of up to US$ 9.5 million, will be provided under the EU-supported Azerbaijan Agricultural Finance Facility (AZAFF) and on-lent to agricultural businesses. AZAFF aims to step up financing for the country’s agricultural sector, boosting its development.
The other credit line, worth up to US$ 4 million, will be on-lent to MSMEs across the country. Both facilities will be extended in two equal tranches.
Bank Respublika is planning to direct most of the EBRD financing to companies outside large cities and to new clients, which are particularly hit by the COVID-19.
“Our goal is to encourage bank lending and help produce an impact on firm growth, productivity and employment,” said Catarina Bjorlin Hansen, EBRD Regional Director for the Caucasus.
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