(MENAFN- Trend News Agency) To increase access to finance for smaller businesses and women
entrepreneurs in Azerbaijan, IFC is providing a financing package
of up to $40 million to bank Respublika. The project aims to boost
the bank's lending to micro, small, and medium enterprises (MSMEs),
including women entrepreneurs, while helping spur economic activity
post-COVID-19.
The financing package comprises $20 million by IFC. And IFC will
additionally mobilize up to $20 million. Around 50 percent of the
proceeds will be earmarked for on-lending to women-owned MSMEs,
improving their access to funding. The project is supported by the
ifc women entrepreneurs finance initiative and the
women entrepreneurs opportunity facility .
MSMEs are an essential part of Azerbaijan's economy,
contributing
45 percent to employment and 15 percent to gross domestic
product (GDP). During the COVID-19 pandemic, large part of MSMEs in
the world were affected and many had to scale down operations.
“Since the main objective of our bank's strategy is to
support the real economy, particularly micro, small, and medium
enterprises, we pay high attention to the growth of these segments.
IFC, one of the world's leading financial institutions, believes in
and supports our strategy, which will help us to successfully
achieve the intended targets,” said Tariyel Ismayilov,
the Chairman of the Management Board of Bank
Respublika.
IFC's funding aligns with the World Bank Group's strategy for
Azerbaijan to boost access to finance for MSMEs, increasing
economic competitiveness. It also fits with the country's 2030
National Development Vision, which prioritizes supporting smaller
businesses to bolster economic growth and create jobs.
“Globally, the pandemic has impacted smaller businesses the
most, especially those owned by women. Azerbaijan is no exception.
IFC's funding will enable Bank Respublika to support these vital
businesses, while also building the financial sector's resilience
and strengthening the country's post-pandemic recovery
efforts,” said Rana Karadsheh, IFC's Regional Director
for Europe.
Azerbaijan became a member of IFC in 1995. Since then, IFC has
invested around $500 million in the country, including $73 million
through mobilization, financing projects across sectors including
financial services, infrastructure, and manufacturing. IFC has also
supported Azerbaijan with around $100 million in trade through its
trade finance program, provided $250 million for the
Baku-Tbilisi-Ceyhan pipeline in 2004, and implemented several
advisory projects to boost private sector growth in the
country.
