Finance

Finance

IFC helps Turan Bank expand lending to Azerbaijanâ€™s small and medium enterprises

29 November 2011 09:00 (UTC +04:00)

Baku. Elnur Huseynguluyev â€“ APA-Economics. IFC, a member of the World Bank Group, will help Azerbaijanâ€™s Turan Bank to strengthen its risk-management practices and develop new financial products for small and medium enterprises, supporting economic diversification and stimulating growth.

IFC will advise Turan Bank on refining its credit policy and risk management operations, developing an a focused strategy for small and medium enterprises, and rolling out new financial products and services for the SME client segment.

â€œServing small and medium enterprises is an important part of Turan Bankâ€™s overall strategy, and we appreciate this opportunity to work with IFC to improve our risk management,â€ said Fezail Musayev, Deputy Chairman of Turan Bankâ€™s Management Board. â€œWe hope this work will result in better lending and risk-management practices, and ultimately, better services to our clients.â€

Turan Bank has been an IFC client since 2009. IFC has helped the bank to improve its corporate governance practices, and in June 2011 extended a $7 million loan to Turan Bank to expand its lending to micro and small entrepreneurs in Azerbaijan.

"The small and medium enterprises sector is emerging as an important area for banks to support new growth opportunities,â€ said Rolf Behrndt, IFC Regional Business Line Leader for Access to Finance. â€œIFC will help Turan Bank to integrate small and medium enterprise clients into its business strategy, and to build a solid value proposition for such companies, based on IFCâ€™s globally-tested model.â€

IFC Advisory Services to expand access to finance often accompany IFCâ€™s financial investments, giving clients the benefit of in-house expertise from seasoned sector specialists. IFC also partners with consultants familiar with local conditions to provide solutions suited to the unique characteristics of a particular country.

Azerbaijan joined IFC in 1995. As of September 30, 2011, IFC had a committed portfolio in Azerbaijan of $139 million. IFC supports diversification of the countryâ€™s economic base, and sustainable growth in the non-oil economy.