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IFC Lends to Azerbaijan’s AGBank to Expand Financing for Small and Medium Enterprises
Baku, Azerbaijan, May 5, 2009—IFC,
a member of the World Bank Group, will provide a $10 million subordinated
loan to AGBank, a leading financial-services provider in Azerbaijan, to
enable the bank to extend financing to up to 70,000 new small and medium
enterprises.
The loan is aimed at supporting AGBank’s
capitalization and growth and is in line with IFC’s strategy to broaden
financing opportunities and improve access to affordable funding for micro,
small, and medium enterprises in Azerbaijan, particularly during the global
economic downturn. IFC will also provide tailored advisory services to
build the bank’s capacity for risk management.
“We welcome IFC’s support and expression
of confidence in AGBank,” said Chingiz Asadullayev, Chairman of the Supervisory
Board of AGBank. “Thanks to the IFC funding and tailored advisory services,
we will strengthen our institutional capacity, which is a priority for
banks’ shareholders, and provide affordable funding to SMEs.”
Shahbaz Mavaddat, IFC Director for Southern
Europe and Central Asia, said: “This subordinated loan to AGBank aims
to provide hard-to-find funding to vibrant SMEs, supporting the private
sector and helping create jobs. The advisory services aimed at strengthening
the risk-management function of one of the leading banks in the country
will help promote best practice in the banking sector.”
About IFC
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous
year. For more information, visit www.ifc.org.
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