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Access Bank borrows new loan from abroad

24 December 2012 10:57 (UTC +04:00)

Baku. Vahab Rzayev – APA-Economics. IFC, a member of the World Bank Group, is providing a $15 million loan to Azerbaijan’s AccessBank to increase funding for micro and small businesses in Azerbaijan, supporting job creation and economic development.

This IFC loan will help the bank expand its lending to small, low-income entrepreneurs who are often underserved by commercial banks. Through its extensive branch network the bank will provide much-needed finances, particularly in rural areas, thereby reducing poverty in these regions.

“Growth of micro and small businesses is often hampered by a lack of access to financial services, in particular in the regions of the country and for small agricultural businesses, stated Michael Hoffmann, General Manager of AccessBank. “AccessBank was created to close this gap, to create a more inclusive financial system. IFC’s loan will help us move forward in this direction.”

Thomas Lubeck, IFC Regional Manager for the South Caucasus, stated, “Through this project, AccessBank, our long-term partner, will increase lending to micro and small businesses engaged in sectors like trade, services, and agriculture. This cooperation is yet another step forward in implementing our strategy in Azerbaijan to foster sustainable growth and diversification of the economy through investment and advisory support to the non-oil sectors.”

IFC, acting with other international financial institutions, promoted the establishment of AccessBank in 2002. The bank is now the leader in micro and small business finance in Azerbaijan, providing crucial financial services to the poor.

Azerbaijan became a member of IFC in 1995. Since then IFC has invested about $364 million in Azerbaijan to support more than 60 private sector projects in the financial services, infrastructure, and manufacturing sectors. IFC also implements advisory programs to improve the business climate, strengthen financial markets, and increase resource efficiency.