BSTDB Supports SME Sector in Azerbaijan
Press Release | 21-Oct-2009
BSTDB is providing a USD 4 million SME loan facility to Azer-Turk Bank with 5 years tenor.
The loan facility will be used by Azer-Turk Bank to finance local small and medium sized enterprises (SMEs) particularly for the purposes of development, modernization, expansion and diversification of industrial, agricultural or service-related facilities. The facility will also cover working capital requirements for production or service related facilities, export and pre-export financing of industrial or agricultural enterprises.
Signing the agreement, BSTDB’s President Hayrettin Kaplan stressed that the loan is an important step towards strengthening the non-oil sector in Azerbaijan and towards developing the financial services in the country. Supporting operations involving more than one member state is a priority for BSTDB.
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Established in 1995, Azer-Turk Bank, being the first foreign capitalized bank in Azerbaijan after the country claimed full independence in 1991, is majority owned by the state companies of Agrarcredit (Azerbaijan) and T.C. Ziraat Bankasi A.S. (Türkiye). Azer Turk Bank’s assets at 2008 year end amounted to USD $56.5 million. Despite its relatively small size, the Bank has strong capitalization and good asset quality. Among the targets of Azer-Turk bank is to support the development of the economy of Azerbaijan and to expand its customer base, focusing on SME lending through recourses made available for this reason.
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. 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 recently increased authorized capital of the Bank is SDR 3 billion (approx. USD 4,85 billion). BSTDB is rated Long Term Baa1 with positive outlook and Short Term P2 by Moody’s.