BSTDB Helps Financial Institutions in Azerbaijan Expand Lending to Small Business
Press Release | 21-Jun-2013
The Black Sea Trade and Development Bank (BSTDB) announces three loans to support the development of micro-, small and medium-sized enterprises (SMEs) in Azerbaijan through credit lines of USD 5 million, USD 10 million and USD 4 million provided to Unibank, FINCA Azerbaijan and TBC Kredit, respectively.
“SMEs represent a key source of growth in the non-energy sector of the Azerbaijani economy, and we are pleased to partner with local financial institutions in expanding the BSTDB SME finance program and enhance the availability of funds to private entrepreneurship in the country” commented Andrey Kondakov, BSTDB President, after the signing of the loan agreements during the Business Forum in Baku.
The BSTDB portfolio in Azerbaijan is EUR 103 million and includes 19 approved operations supporting primarily SME development.
The BSTDB credit line to Unibank builds upon successful eight-year cooperation between the two banks, implementing BSTDB Trade Finance and SME Support Programs in Azerbaijan. With the new facility, the BSTDB credit lines made available to Unibank for SME financing totaled USD 15 million.
The credit line to FINCA Azerbaijan will help increase the much-needed funding to small business development, especially in rural areas of the country.
The loan to TBC Kredit supports successful regional investment between Azerbaijan and Georgia. TBC Kredit’s parent institution, TBC Bank Georgia, is actively involved in implementing the BSTDB SME and Trade Finance programs in Georgia.
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Unibank was established in 2002 as a result of the merger of two private commercial banks of Azerbaijan - MBANK (est. 1992) and PROMTEKHBANK (est. 1994). Unibank signed Equity Participation Agreements with EBRD (15.15% shares) in 2003 and with DEG (8.33% shares) in 2005. Being one of the largest banks in the country, with a sizable market share, Unibank is an active player in the local lending market with strong presence throughout the country and good brand recognition.
FINCA Azerbaijan is a non-bank credit organization providing financial services to Azerbaijan’s lowest-income entrepreneurs, so they can create jobs, build assets and improve their standard of living. Its total assets exceed USD 190 million as of May 2013. Over the last 15 years, FINCA Azerbaijan has grown to become the leading non-bank credit organization in Azerbaijan, with a network of over 60 branches and offices across the country serving over 145,000 clients and directly employing over 1.000 staff.
TBC Kredit LLC was founded in 1999 as a non-bank credit institution by TBC Bank, Georgia (75%) and ShoreBank International, (25%). Targeting private micro-, small and medium-sized enterprises, as well as mortgage and retail banking market, TBC Kredit employs a well-trained staff in its four offices across Azerbaijan. With a loan portfolio of USD 36,1 million, TBC Kredit currently ranks fourth in asset volume among the local non-bank credit organizations, and plans further expansion.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is SDR 3 billion (appx. EUR 3.5 billion). BSTDB is rated long-term “A-” by Standard and Poor’s and “A3” by Moody’s. For more information about BSTDB, please visit www.bstdb.org.
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