Azernews.Az

Azerbaijan`s Pasha Bank intends to attract loans from abroad and direct them to financing small and medium enterprises in the country, Board Chairman Farid Akhundov has said.

``Preference in financing will be given to the fields of agriculture, transport, information technologies, tourism and trade,`` Akhundov said at a press conference on the results of the bank`s activity in 2011.

He noted that the bank will enhance its operations in this area after international rating agencies make their assessments.

Pasha Bank intends to obtain ratings from two out of the three major agencies (Moody`s, Fitch Ratings and Standard & Poor`s) towards the end of the year and is already in negotiations to that end.

Pasha Bank allocated loans worth 234 million manats ($298 million) in 2011, an increase of 24.56 percent compared to 2010. In 2011, 45.16 percent of the loan portfolio consisted of loans granted to the trade and services sector, 24.5 percent - the processing industry, 15.16 percent construction, 8.13 percent the hotel business and 7.05 percent other sectors.

Pasha Bank was established in June 2007. Its shareholders are Pasha Holding with 60 percent, ADOR Ltd with 30 percent and Arif Pashayev with 10 percent.

The bank, along with Pasha Insurance, Pasha Life insurance company, Pasha Travel and Pasha Construction, is included in Pasha Holding, which is actually an investment company, not a typical holding company.

Kapital Bank is also included in the structure of Pasha Holding. The holding owns 99.75 percent of the bank`s shares.

Branching out
Pasha Bank plans to open a branch in neighboring Georgia in the third quarter of 2012.

The office of Pasha Bank, which has been present in the Georgian banking market since last summer, will be converted into a branch.

Its management said the bank is looking for employees and job announcements have been posted on the Internet.

Earlier, head of the bank`s office in Georgia, Anar Ismayilov, explained the opening of the branch with the interests of Pasha Bank clients.

``Banks generally reach out to their customers. Now there are a lot of Azerbaijani companies that operate in Georgia, and we represent their financial interests. Also, in Georgia, there is staunch competition between banks, and this experience will be helpful to us,`` he said.