BSTDB to clinch loan deals with Azerbaijan’s financial institutions (UPDATE)
By Nazrin Gadimova
The Black Sea Trade and Development Bank (BSTDB) is preparing to
allocate loans to the sum of $34 million to the four financial
institutions in Azerbaijan, BSTDB reported on June 15.
"Loan resources will be allocated to three banks and a non-banking institution. Funds are intended to support the development of small and medium-sized enterprises," the bank said.
As reported in the bank, two of the borrowers are already BSTDB customers.
The loan agreements will be signed on June 23 at the XV annual meeting of the Black Sea Trade and Development Bank, which will be held in Baku on June 20-23.
At present, the bank's activities are mostly concentrated in the financial sector. BSTDB has opened credit lines to ten Azerbaijani banks - International Bank of Azerbaijan, Access Bank, AGBank, Unibank, Texnika Bank, Demir Bank, Kapital Bank, Azer-Turk Bank, Bank Standard and Bank Respublika.
One contract was signed in the real sector with a retail chain of ADA Almali Retail.
At present, Greece, Russia and Turkey remain the bank's largest shareholders with stakes of 16.5 percent each. Romania owns 14 percent, Bulgaria and Ukraine - 13.5 percent each, Azerbaijan - five percent, Albania - two percent, Armenia and Moldova - one percent each, and Georgia - 0.5 percent.
The bank's governor from Azerbaijan is the Minister of Economic Development Shahin Mustafayev and his deputy is Finance Minister Samir Sharifov.
At the end of 2012, BSTDB active portfolio in Azerbaijan consisted of 18 Board approved operations for the total amount of 87.7 million euros. Azerbaijan ranks fifth in terms of Board approved transactions with the figure accounting for 6.9 percent of the total portfolio, and signed operations with 7.5 percent of the total portfolio. The country also ranks fifth on outstanding financing, with 9.8 percent of the total portfolio.
Based on the 2011-2014 Business Plan, the bank would expect to approve new operations in Azerbaijan for approximately 18-26 million euros per year or approximately 88 million euros over the four-year period.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. With an authorized capital of SDR 3 billion, the bank supports economic development and regional cooperation by providing trade and project financing, guarantees, and equity for development projects supporting both public and private enterprises in its member countries. BSTDB is rated A-/A-2 with stable outlook by Standard & Poor's, and A3/P2 with stable outlook by Moody's.