Azernews.Az

BAKU – The European Bank for Reconstruction and Development has allocated $10.5 million in loans to Azerbaijan’s Bank Respublika, the EBRD Baku office said.

The EBRD is providing $3m as a second tranche for on-lending to private entrepreneurs and an 8-year $6m mortgage loan as a second tranche to be on-lent by Bank Respublika to private individuals as residential mortgage loans. The EBRD is also allocating a $1.5m credit line under the Medium-Sized Co-financing Facility Framework.

Francis Delaey, head of the EBRD office in Azerbaijan, said the EBRD has been cooperating with Bank Respublika since 2004. Over this time, the bank became one of the EBRD’s most active partners in Azerbaijan. Bank Respublika was also the first bank to receive EBRD mortgage development financing.

"During this time over 30 small and medium enterprises were able to benefit from our joint lending," Delaey said.

The EBRD is supporting economic development in Azerbaijan within its Multi-Bank Framework Facility for micro, small and medium enterprises by extending loans to Azerbaijani partner banks. The Framework Facility with a total of $6m was signed in 2009 and planned for disbursement in two tranches. In addition, a mortgage loan agreement for a total of $10m was signed in 2008, which is used to assist in developing Azerbaijan’s mortgage market.

Since the beginning of its operations in Azerbaijan, the EBRD has invested some 1.2 billion euros in about 120 projects, with over 60 percent of the projects being investments into the development of the private sector.