EBRD reduces loans to Azerbaijan in 2019
By Abdul Kerimkhanov
The European Bank for Reconstruction and Development (EBRD) approved loans totaling 17 million euro for the implementation of five projects in Azerbaijan’s private sector in 2019 a source within the Bank told local media on January 30.
Note that in 2018, the EBRD funded five projects in Azerbaijan and allocated loans totaling 304 million euros for these purposes. Thus, the volume of lending decreased by almost 18 times in 2019.
In 2015-2019, the EBRD allocated a total of 1.109 billion euros for lending to 37 projects in the public and private sectors of Azerbaijan.
In general, as of December 31, 2019, the bank's current portfolio of 36 active projects in Azerbaijan is estimated at 1.388 billion euros. Of these funds, 77 percent were invested in infrastructure, 21 percent - finance, two percent - industry, commerce and agribusiness.
EBRD is a leading investor in Azerbaijan. The country has been cooperating with EBRD since 1992 to achieve further economic development. One of the main priorities of EBRD in Azerbaijan is to support the local corporate sector with direct financing. EBRD continues to pursue investments in energy projects, especially where there is a gap to improve efficiency and energy security.
Presently, EBRD pays special attention to the development and financing of renewable energy projects in Azerbaijan. The Bank is also interested in the development of SMEs and financial sector while helping the economy to diversify its economy.
In Azerbaijan, EBRD focuses on promoting market-driven diversification, developing a sustainable financial sector to support private sector development, and Improving governance and the business environment.
The EBRD’s latest Azerbaijan strategy was adopted on 25 April 2019.
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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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