Azerbaijan: EIB Global and Bank Respublika sign €10 million loan agreement to boost finance access for small businesses

May 08, 2024

  • The loan agreement with Bank Respublika will offer attractive terms and conditions, making it easier for small businesses to access finance.
  • The loan is being provided by EIB Global under its €100 million MSME Outreach Initiative for the Southern Caucasus.
  • It contributes to a sustainable, innovative, green and competitive economy in Azerbaijan under the European Union’s flagship Economic and Investment Plan for the Eastern Partnership.
     

EIB Global, the arm of the European Investment Bank (EIB) for financing activities outside the European Union, has signed a €10 million loan agreement with Bank Respublika to support micro, small and medium-sized enterprises (MSMEs) in Azerbaijan. The agreement will promote financial inclusion by providing loans to small businesses on preferential terms and with the option of disbursal in local currency, boosting investment, growth and employment.   

 

The loan is part of the EIB’s MSME Outreach Initiative for the Southern Caucasus, which works to improve access to finance for MSMEs. The initiative will stimulate competition in the banking sector and increase the quality and quantity of finance accessible to small businesses. It will help create or maintain some 26 500 jobs in the Southern Caucasus region, fuelling private sector-driven growth and promoting social inclusion.

 

The operation also furthers the objectives of the Economic and Investment Plan for the Eastern Partnership, the flagship EU initiative to support 25 000 MSMEs in Azerbaijan.

 

EIB Vice-President Teresa Czerwińska, responsible for the Bank’s activities in Azerbaijan, remarked, “The EIB is pleased to support small businesses in Azerbaijan. Thanks to the partnership with Bank Respublika, this loan will promote financial inclusion for underserved MSMEs and increase their contribution to the economy. It will contribute to a diversified, sustainable and innovative economy in line with the European Union’s Economic and Investment Plan in the country.”

 

Director-General for Neighbourhood and Enlargement Negotiations of the European Commission Gert Jan Koopman emphasized, “The EU places a strong focus on supporting micro, small and medium-sized enterprises – a key part of the implementation of the EU’s Economic and Investment Plan in Azerbaijan. This loan is an important milestone of EIB activity in Azerbaijan and a welcome opportunity to support business opportunities and economic development, improving livelihoods across the country.”

 

Bank Respublika CEO Tariyel Ismayilov stated, “We are proud to be a key partner for the EIB in Azerbaijan. This agreement is another important indicator of the confidence international financial institutions have in both the stability of the country’s banking system and the reliability of Bank Respublika. The mobilised funds will allow us to strengthen credit support for the real sector, which is our main priority, and MSMEs in particular, enabling entrepreneurship in the country to develop.”

Latest

The Launching Event of the EU-Azerbaijan Business Forum 2024-2026 was held in Baku

News

On 29 May 2024, COWI Belgium in collaboration with the Azerbaijan-France Chamber of Commerce and Industry (AFchamber) and InvestBaku, held the  Launching Event of the EU-Azerbaijan Business Forum 2024-2026 project funded by the European Union.

Exploring Innovation and Entrepreneurship: Insights from Tallinn’s Latitude59 Event

News

Azizaga Atakishiyev, a Green Vet Specialist, shares insights from his recent educational tour at Tallinn's Latitude59 event.

Azerbaijan: EIB Global and Bank Respublika sign €10 million loan agreement to boost finance access for small businesses

News

EIB Global, the arm of the European Investment Bank (EIB) for financing activities outside the European Union, has signed a €10 million loan agreement with Bank Respublika to support micro, small and medium-sized enterprises (MSMEs) in Azerbaijan.

European Commission Director General to visit South Caucasus

News

European Commission Director General for Neighbourhood & Enlargement Negotiations, Gert Jan Koopman, will travel to Armenia, Georgia and Azerbaijan between 30 April and 4 May to discuss bilateral and regional cooperation and launch new initiatives. 

Commissioner Simson in Azerbaijan: ‘We have made clean energy a key part of EU-Azerbaijan relations'

News

The second Ministerial Meeting of the EU-Azerbaijan Green Energy Advisory Council took place in Baku on 1 March, co-chaired by European Commissioner for Energy Kadri Simson. 

Invest in Women: a spotlight on EU support for women in business

News

As part of its campaign around this year’s International Women’s Day, EU NEIGHBOURS east has brought together all the opportunities available for women in business in Azerbaijan into a series of explainers highlighting the training, advisory and financial assistance available for women in each country, with the support of the EU and its partners.

New Cargo Airport that will be located at the territory of the AFEZ

News

New Cargo Airport that will be located at the territory of the AFEZ and will serve the needs of AFEZ investors, as well as other clients in international cargo transportation.

EBRD lends €38.7 million to Azerbaijani shipping company

News

The European Bank for Reconstruction and Development (EBRD) is to provide a $42 million (€38.71 million) loan to the Azerbaijan Caspian Shipping Company (ASCO), a state-owned shipping company in Azerbaijan.

EU4 Azerbaijan: a single place for the latest information on cooperation with the EU

News

Are you looking for the latest information about EU cooperation in the countries of the Eastern Partnership? If you are living or interested in Azerbaijan, you can access live updated information on almost a thousand projects and programmes funded by the European Union in these six countries, thanks to a unique integrated online platform – the EUDIGITOOL – developed and maintained by the EU NEIGHBOURS east programme.

Sector-Specific EU Business Mission to Nakhchivan

News

EU Business Mission to Nakhchivan part of EU-Azerbaijan BusinessForum 2020-2022 assignment.

The EU project implemented by UNDP held the first “Ideathon on Agrinnovation” in Lankaran

News

EU4Lankaran supports the youth and innovation in agriculture in Lankaran/Astara economic region.

INVESTMENT AGREEMENT SIGNED BETWEEN AZERBAIJAN INVESTMENT COMPANY AND BALACANS AGRO FOOD LLC

News

As a result of the successful socio-economic policy of the head of the state, a favorable business environment has been created in our country. Systematic measures carried out towards the sustainable development of the non-oil economy, effective mechanisms applied to support investments, increase production and export potential also open wide opportunities for business development in the regions.