IFC Continues to Help the Efforts of Azeri Banks in Supporting Small and Medium Enterprises
In Washington, DC:
Elika Trifonova
Phone: +202 475 8357 - Fax: +202 974 4384
Email: etrifonova@ifc.org
In Baku:
Aliya Nuriyeva
Phone: +994 (12) 921-941
Email: anuriyeva@ifc.org
BAKU, AZERBAIJAN, May 8, 2003—The International
Finance Corporation signed loan agreements today totaling $2.4 million
with Azerigazbank and Rabitabank, two of the largest private banks in Azerbaijan.
The IFC loans will be used for on-lending to privately-owned small and
medium enterprises to finance business expansion and modernization
and to provide working capital.
The project also includes a complementary program of technical assistance
to provide the necessary know-how to the participating banks, focusing
on enhancing the banks' capacities in small business services such
as credit evaluation, risk management, management information systems and
internal controls and procedures.
Mr. Peter Woicke, executive vice president of IFC, noted that the project
will “stimulate economic activity in a number of key sectors, which will
assist Azerbaijan’s diversification efforts in the non-oil sectors to
promote sustained economic growth and reduce poverty.” He added, “This
project is part of IFC's strategy for the development of financial markets
and strengthening support for small businesses in the region. I am
very happy to be able to personally express IFC's commitment to these objectives
today."
“IFC is committed to supporting and strengthening Azerbaijan’s financial
sector to enable it to provide much-needed financing to promote the development
and growth of entrepreneurs in the small and medium business sectors,”
said Mr. Khosrow Zamani, director of IFC’s Southern Europe and Central
Asia Department. “We are very pleased to further develop the capacity
of Rabitabank and Azerigazbank to provide loans to this target group whose
success is vital to the long-term health of the economy of Azerbaijan,”
he added.
The mission of IFC is to promote sustainable private sector investment
in developing countries, helping to reduce poverty and improve people's
lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956 through FY02, IFC committed more than $34 billion of its own funds
and arranged $21 billion in syndications for 2,825 companies in 140 developing
countries. IFC's worldwide committed portfolio as of FY02 was $15.1 billion
for its own account and $6.5 billion held for participants in loan syndications.
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