Azerbaijan's Bank Respublika raises MSME loan of 10 mln euros from EIB Global

BAKU. May 6 (Interfax) - Azerbaijan's Bank Respublika has raised a loan of 10 million euros from EIB Global, a member of the European Investment Bank group, to support micro, small and medium-sized enterprises (MSMEs) in Azerbaijan.

Bank Respublika said in a press release that the relevant loan agreement had been signed.

"This agreement will promote financial inclusion by providing loans to small businesses at competitive terms and with the option to be disbursed in local currency, to boost investments, growth and employment," the bank said.

The loan is being provided as part of EIB's MSME Outreach Initiative for the Southern Caucasus.

"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," said Director-General for Neighbourhood and Enlargement Negotiations of the European Commission Gert Jan Koopman.

Founded in 1992, Bank Respublika is Azerbaijan's fifth biggest bank by assets. The bank's principal shareholders are Natig Guliyev and members of his family. Germany's Sparkassen International Development Trust (SIDT), part of the Sparkassen-Finanzgruppe financial group, holds 4.25%.