(MENAFN- Trend News Agency)
BAKU, Azerbaijan, June 24. The Black Sea Trade
and Development bank (BSTDB) is very interested in providing
financing in local currency in Azerbaijan, Dmitry Pankin, BSTDB
President said in an exclusive interview with Trend.
“We understand that financing in local currency reduces risks
for clients and for the entire financial sector. The BSTDB already
has experience in this regard. We have issued bonds in manats using
the infrastructure of the national currency market and worked with
local financial institutions on mobilizing the local currency. We
are open and considering alternative options for getting access to
the local currency, as there is a great demand both from the
financial mediators and corporate borrowers,” said the BSTDB
president.
New agreements with Azerbaijani banks
He noted that BSTDB will sign two new agreements with
Azerbaijani banks.
“Under these agreements, our partners will get loans for
supporting trade financing (exporters and importers) and small and
medium-sized enterprises in the country. We are also ready to
cooperate with local financial institutions as part of the joint
financing of corporate clients with local currency as well. The
possibility of financing in manats will be considered in all future
operations taking into account the client's request, specifics and
risks of the project financed,” said Pankin.
Priorities of cooperation
He went on to add that the main priorities of the BSTDB in
Azerbaijan are reflected in the strategy for 2019-2022 and are
directly related to the Bank's mandate on supporting the economic
development of participating states and facilitating regional trade
among them.
“We have intensified our contacts with Azerbaijan's financial
institutions and are preparing two new agreements with Azerbaijani
banks. We are considering new projects for providing financial
resources to financial institutions within our product line, which
includes loans and guarantees for supporting trade financing,
leasing, providing loans for micro, small and medium-sized
enterprises, as well as for corporate and individual clients for
promoting green economy. We continue to attach great importance to
our cooperation with financial mediators for financing SMEs, with
which we can't work directly due to some objective reasons, as well
as the principle of non-competition with local financial
institutions,” said Pankin.
BSTDB President pointed out that one of the Bank's priorities is
to support the energy sector and create a modern infrastructure
using the cutting-edge technologies and meeting environmental
requirements in order to reduce the adverse affect on the
environment.
“Direct support to enterprises (medium-sized and large
companies) in different spheres of economy, including agriculture,
food production, manufacturing of equipment and instruments,
chemical industry, transport, logistics and tourism is also our
priority. We pay special attention to environmentally friendly
projects, which increase the export potential and apply sustainable
economic and technical standards and practices. We are in contact
with state and private institutions in order to fulfill these
priorities, but for now, these initiatives are at an early stage of
development,” said Pankin.
New projects
He went on to add that the Board of Directors of the Black Sea
Trade and Development Bank has approved three projects worth $40
million in Azerbaijan since early 2022.
He noted that these projects are related to the spheres of
energy and finance.
“We have signed an agreement with Azerbaijan's state oil company
SOCAR only on one of these projects. We expect to sign agreements
on the remaining two during the upcoming business forum to be held
June 24, 2022,” said Pankin.
Pankin noted that BSTDB has started the work on a new project in
Azerbaijan's energy sector in 2022 with participation of the state
oil company SOCAR as a sponsor.
“However, the deal is yet at an early stage,” he explained.
Pankin noted that the Bank has been successfully cooperating
with SOCAR and its subsidiaries for several years.
“We have provided a loan to SOCAR Türkiye within our energy
project, which was fully repaid in 2021. Moreover, as part of the
BSTDB trade financing portfolio, we provided revolving line of
credit for working capital financing to Socar Trading,” he
explained.
Bank's portfolio
Pankin pointed out that the portfolio breakdown of the Black Sea
Trade and Development Bank (BSTDB) for Azerbaijan is as follows:
support for small and medium-sized enterprises (47.5 percent),
energy (35 percent), real estate (8.4 percent), consumer goods (4.8
percent) and industry (4.4 percent).
“The BSTDB has financed 39 projects worth over half a billion
euros in Azerbaijan since the start of operations in line with the
investment priorities of the government. The Bank has been engaged
in such important energy projects as Shah Deniz, at the same time
focusing on SMEs in the non-oil sector. This week we will meet with
interested companies here in Azerbaijan and I am confident that
this will contribute to further development of business projects in
the country,” added the BSTDB president.
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