EIB ups support for Azerbaijani MSMEs with new financing for Bank Respublika

The European Investment Bank’s international partnerships and development arm, EIB Global, has signed a €2 million top-up to the outstanding €10 million loan to Bank Respublika, reinforcing the European Union’s commitment to expanding access to finance for micro, small and medium-sized enterprises in Azerbaijan. 

The new funding, announced on 19 March, will enable Bank Respublika to further scale up lending to Azerbaijani businesses, particularly by increasing the availability of loans in Azerbaijani manat, helping local enterprises access more stable and affordable financing.

EIB Vice-President Karl Nehammer, who oversees the Bank’s operations in the Eastern Partnership region, said: “Micro, small and medium-sized enterprises are at the heart of Azerbaijan’s economy. Through the successful partnership with Bank Respublika, EIB Global is helping local businesses access the funding they need to grow, create jobs and innovate.”

The top-up comes at a strategic moment as Bank Respublika prepares to pilot the innovative local currency hedging mechanism introduced by the Central Bank of Azerbaijan. This facility will allow the bank to hedge foreign exchange exposures more effectively, helping to create a more stable environment for MSME lending in the country. 

“Developing deeper and more resilient financial markets is key to supporting Azerbaijan’s economic transformation. The Central Bank’s new local currency hedging mechanism is an important innovation that can help banks better manage exchange rate risks and expand lending in local currency,” EU Ambassador to the Republic of Azerbaijan, Marijana Kujundžić said.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international win-win partnerships and development finance, and a key partner of Team Europe and the Global Gateway strategy. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world.  

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Press release