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EBRD: Financing gap for SMEs still remains in Azerbaijan

Elmin Ibrahimov, an employee of the EBRD’s office in Azerbaijan

12 November 2025 17:05 (UTC +04:00)

The European Bank for Reconstruction and Development (EBRD) is implementing several financial programs in Azerbaijan aimed at increasing access to financial resources for small and medium-sized enterprises (SMEs) and expanding their export opportunities, said Elmin Ibrahimov, an employee of the EBRD’s office in Azerbaijan, during his speech at the “Asia SME Monitor 2025” seminar held in Baku, APA-Economics reports.

According to him, within the framework of cooperation with local banks, the EBRD is implementing the Trade Facilitation Programme. Through this program, agreements have been signed with four local banks, and these banks are able to provide SMEs with credit lines, letters of guarantee, and trade finance instruments.

In addition, the EBRD provides financial support to entrepreneurs through SME financing lines and direct loans. These financing lines are often combined with grants from donor organizations such as the European Union (EU), and the funds are directed toward the implementation of energy-efficient and resource-saving technologies.

E. Ibrahimov stated that the EBRD’s Advisory Services are also aimed at SMEs. Through local experts, the Bank supports companies in areas such as marketing, quality certification (ISO), alignment of financial reporting with IFRS standards, and staff training.

Elmin Ibrahimov stated that despite this, the financing gap for SMEs still remains. Since local banks consider these companies to be riskier, collateral requirements and interest rates are high. At the same time, the lack of knowledge and certification is among the main constraints.

The EBRD official emphasized that the bank continues to provide financial and technical support to help SMEs obtain international certifications, increase their competitiveness, and enhance their export potential.