The European Bank for Reconstruction and Development (EBRD) announced on Wednesday the extension of a loan of up to US$ 7.5 million (€7 million) in local currency to Bank Respublika, one of Azerbaijan’s leading commercial banks. Bank Respublika will lend the proceeds on to micro, small and medium-sized enterprises (MSMEs).
The loan agreement was signed at the UN Climate Change Conference in Baku (COP29), with the financing being provided under the Eastern Partnership SME Competitiveness and Inclusion Programme (SMECI). The programme is supported by the European Union through grant funding to ensure that MSMEs have access to the resources and guidance needed for successful implementation of projects.
“This financing package is the first SMECI project in Azerbaijan. By bolstering MSMEs’ access to finance, the EBRD, the EU and Bank Respublika are continuing to build resilience in Azerbaijan’s MSME sector, strengthening private-sector development and diversification of the economy,” the EBRD said in a press release.
