Azernews.Az

By Gulgiz Dadashova

Baku believes there is a huge potential for diversification of the loan portfolio of the European Bank for Reconstruction and Development in Azerbaijan.

The issue was a key topic on the agenda during meetings that a delegation from the EBRD's Board of Directors, which represents the bank's shareholders, held in the country during their visit on April 7-10.

Azerbaijan's Economic Development Minister Shahin Mustafayev, who spoke about the potential for diversification of the bank's loan portfolio at a meeting with the EBRD delegation, said that since the start of cooperation with Azerbaijan EBRD has allocated $2.1 billion to finance 117 projects in the country.

Mustafayev noted the importance of the EBRD's experience in supporting the agricultural and industrial parks and invited the bank to directly finance private enterprises and expand activities to participate in share capital.

"This is the second advisory visit of the EBRD Board delegation to Azerbaijan, which is an indicator of the successful cooperation between the bank and the country," Mustafayev said while evaluating the support provided by the bank for the development of both the public and private sectors of the national economy.

Board Director for the United Kingdom Jonathan Ockenden, for his part, said that Azerbaijan's economic achievements are in the focus of the bank's attention.

Ockenden voiced confidence in further successful cooperation between the EBRD and Azerbaijan.

During the EBRD delegation's meeting with Minister of Finance Samir Sharifov, ways of developing Azerbaijan-EBRD cooperation in various fields, including transport infrastructure, social projects, information and communication technologies, tourism, education, and healthcare, and the new country strategy were mulled.

The sides exchanged views on the way the country is working on the reconstruction of the road transport sector, infrastructure and other issues.

In March, the head of the EBRD office in Azerbaijan Neal McCain said that the bank was starting official negotiations on the development of a new strategy for Azerbaijan in May 2013.

According to McCain, the new strategy of the bank will cover the period from December 2013 to December 2016.

The EBRD's activity in Azerbaijan focuses on the following key areas: industry, commerce and agribusiness, finance and energy, and infrastructure.

Priority areas include increasing investments in the country's non-oil sector, funding financial sector development and support for small business.

Recent EBRD activities in Azerbaijan include the first energy efficiency loan to a local bank, a loan to the largest domestic mineral water bottler, three credit lines for small businesses and a major road upgrade project.