Eib Plans To Expand Support To Private Sector In Azerbaijan


(MENAFN- Trend News Agency) BAKU, Azerbaijan, July 17. The European Investment bank (EIB) plans to expand support to the private sector in Azerbaijan, a source at EIB told Trend.

"The EIB provides finance and expertise for sound and sustainable investment projects in Azerbaijan. EIB Global – the Bank's development branch responsible for operations outside the European Union - has supported micro, small and medium enterprises (MSMEs) in Azerbaijan through direct or indirect cooperation with the local financial sector. Looking ahead, we plan to expand our support to the private sector and to expand access to finance, with the goal of generating employment, developing resilient and sustainable MSMEs and increase their productivity," said the source.

The source pointed out that the Bank is also in regular contact with government representatives discussing cooperation in the areas of mutual interest, including green economy, digitalization, urban development, and sectors mentioned in the EU Global Gateway Initiative and the Eastern Partnership Economic and Investment Plan.

"The EIB is a demand-driven institution, if there are projects in the country that would benefit from our financing and meet EU policy goals and our various standards, we are always happy to consider financing of these. The EIB regularly discusses areas of cooperation with the Government of Azerbaijan and other relevant stakeholders.

We have a framework in place to ensure that the projects we support are aligned with the goals of the Paris Agreement. We have introduced an updated approach to ensure that the clients we lend to are aligned with the goals of the Paris Agreement on climate change. This applies to large companies active in high-emitting sectors, those that are highly vulnerable, and large financial institutions. Building on European Union regulations, this requires large companies to disclose their alignment plans, including a mid-term carbon target. Such plans should also address building resilience to future climate change. The EIB will work with clients to develop and publish these plans," said the source.

The EIB has worked with Azerbaijan since 2014.

The Bank operates under the framework of the European Neighbourhood Policy (ENP), the Eastern Partnership (EaP) and other EU bilateral agreements. It has invested more than €96 million in the country. Through cooperation with a local bank, the EIB has provided funding worth €25 million to more than 120 enterprises.

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