|
EBRD supports Azerbaijan's micro and small enterprises
Micro Finance Bank of Azerbaijan to open in August
The European Bank for Reconstruction and Development, International Finance Corporation (IFC), Black Sea Trade and Development Bank and technical partner LfS Financial Systems GmbH have combined to set up the Micro Finance Bank of Azerbaijan. The new bank, known as the MFBA, will support the development of a viable micro and small enterprise sector in Azerbaijan by providing entrepreneurs with access to finance from the formal banking sector. The EBRD will also lend $5 million to MFBA for on-lending to MSEs.
MFBA will open a headquarters office in Baku in August. with a second branch to be opened in Sumgait later this year. A third branch in Ganja will follow, as will outlets in the regions surrounding these three principal cities.
EU TACIS is providing €1.9 million of technical assistance. LfS Financial Systems was selected through a competitive tender to manage the bank and develop the institution-building measures, which will enable it to lend efficiently. These include the recruitment and training of loan officers and branch personnel, and the establishment of the necessary infrastructure.
The EBRD is committed to the development of the MSE sector in its countries of operation. Its Group for Small Business manages long-term MSE financing programmes in 15 countries and has acquired substantial experience in building MSE lending operations. To date the EBRD has committed nearly €500 million to MSE programmes that have together disbursed over €1.6 billion to more than 180,000 MSEs. MFBA will replicate the highly successful microfinance banks already established in Albania, Bosnia, Bulgaria, Georgia, Romania, Russia, Ukraine and Yugoslavia.
|
