BSTDB Teams Up with Rabitabank to Promote SME Sector Development in Azerbaijan
Press Release | 24-Jun-2022
Option for on-lending in local currency
The Black Sea Trade and Development Bank (BSTDB) and Rabitabank, one of the oldest banks in Azerbaijan, have signed a USD 10 million agreement, which will benefit small and medium-sized enterprises (SMEs) in the country. The BSTDB loan will be on-lent to SMEs to finance their investment programmes and working capital needs, help their development in domestic and international markets and strengthen their competitiveness and export capacity.
The facility has an option for disbursement of funds in Azeri Manat. This not only improves access and availability of funds, but also minimizes foreign exchange risks. The financing is in line with the Azerbaijani Government’s continued efforts to diversify the economy away from the oil and gas sector and also in tune with BSTDB’s priority to support the development of local SMEs.
Commenting on the agreement that was signed at the BSTDB Business Forum in Baku, Dmitry Pankin, BSTDB President, said: “SMEs represent a key source of growth in the non-energy sector of the Azerbaijani economy. We are pleased to be coming together with Rabitabank to broaden our support for the development of this vital segment of the economy and help small businesses generate employment, increase export capacity, build competitiveness and otherwise support economic growth in the country.”
The Chairman of the Management Board of Rabitabank OJSC, Dr. Aydin Huseynov said: “We believe our agreement between the Black Sea Trade and Development Bank (BSTDB) will be successful and sustainable. The USD 10 million in financial support provided by our partner will improve the business environment for the sustainable development of the non-oil sector, and create sufficient opportunities for financing small and medium enterprises (SMEs), as well as import and export operations.”
Rabitabank OJSC, established in 1993, is one of the oldest private banks in Azerbaijan. The bank is headquartered in Baku and provides all types of financial services to individuals and companies, mainly from the agriculture, manufacturing, trade, construction, transportation, and communications sectors. As of end-2021, Rabitabank was the seventh-largest bank in Azerbaijan by assets with a network of 27 branches, 74 ATMs and 756 POS terminals in the country.
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 EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s, “Baa1” by Moody’s and “A+” by the Russian credit rating agency ACRA. For information on BSTDB, visit www.bstdb.org.
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