Finance

Home page

Finance

EBRD grants new loan to Muganbank

30 January 2013 08:17 (UTC +04:00)

Baku. Vahab Rzayev – APA-Economics. The EBRD is continuing to support the real economy in Azerbaijan with a $6 million financing package to "Muganbank" OJSC to ensure a continuous flow of credits to small businesses and to enhance the local bank’s trade facilitation activities.

The EBRD facility includes a $5 million credit line for on-lending to micro, small and medium enterprises (MSMEs) operating in Azerbaijan.

The Bank will also provide an additional $1 million trade finance facility under the Bank’s Trade Facilitation Programme (TFP) which will bring the total TFP facility for Muganbank OJSC to $4 million. The funds will be used to support guarantees, letters of credit and bank-to bank reimbursement undertakings issued by Muganbank OJSC in the context of cross-border trade.

The EBRD funds will allow Muganbank to maintain sustainable MSME lending activities, the core of its strategy, thereby addressing the high demand for loans from local entrepreneurs, and to increase the availability of trade financing to Azerbaijani companies. The proceeds of the EBRD financing will be used to finance investments and working capital of local enterprises with medium and long-term loans as well as to guarantee cross-boarder trade of private businesses.

Muganbank OJSC is a mid-sized private bank in Azerbaijan operating through 29 offices. To date the EBRD has provided the institution with financing facilities worth $16 million.