Azerbaijan’s top bank signs loan deal with EIB
The International Bank of Azerbaijan, the country’s largest lender, and the European Investment Bank signed a loan agreement worth 50 million euros in Luxembourg on September 16.
The loan will be directed to financing projects promoted by small and medium-sized enterprises (SMEs) and middle capitalization companies (midcaps) in the country, according to the Bank.
The EU bank’s loan will support projects in the priority areas specified by the EIB external lending mandate, including the development of the local private sector.
This financing will enhance the access to finance for Azerbaijani SMEs and midcap companies, particularly in industry and services not related to the oil and gas industry, thus contributing to the diversification of the economy of Azerbaijan, and help the IBA to strengthen its position on the SME and midcap sector in the country.
The operation will support the Azerbaijani Government's strategy to diversify the economy and contribute to increasing the share of GDP generated by the SME sector while fostering sustainable private sector-led growth, which is also fully in line with the EU’s cooperation strategy with Azerbaijan. The EIB funds will contribute to job creation and raise the living standards of the citizens of Azerbaijan.
The European Investment Bank is the long-term lending institution of the European Union and is owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
The bank, 50.2 percent owned by the Azerbaijani Ministry of Finance, was founded in January 1992. The IBA’s reported a consolidated total asset base of 8.8 billion manat, aggregate capital of 1.008 billion manat, and a net profit of 64.5 million under audited IFRS as at year-end 2014.
The bank’s loan portfolio rose by 16.6 percent, and in early 2015, it stood at 5.868 billion manat.
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