Finance

Home page

Finance

USAID signs contracts with 2 banks in Azerbaijan

07 October 2010 15:01 (UTC +04:00)

Baku. Elnur Huseynguluyev â€“ APA-Economics. USAID signed contracts with AccessBank and DemirBank through 2015 to help improve access to finance for micro-, small- and medium-sized enterprises, including targeted lending to the agriculture sector.
This agreement is part of the USAID Development Credit Authority (DCA) program. The DCA tool provides partial credit guarantees on loans or bonds, thereby mitigating the risk to a lender. The credit guarantees enable USAID to encourage banks to lend their own capital to creditworthy but underserved sectors. Leveraging private capital allows USAID to have a greater more sustainable impact, allowing banks to become familiar with sectors previously viewed as risky.
DemirBank has been in operation since 1989.
AccessBank has been in operation since 2002.
Note that since Azerbaijanâ€™s independence, USAID has provided over $300 million of financial assistance and technical expertise, to bring positive and lasting change within the country’s institutions and the lives of its people.