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.”
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