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ADB ready to support SMEs in Azerbaijan

13 December 2016 [13:13] - TODAY.AZ

By Azernews


By Nigar Abbasova

The Asian Development Bank (ADB) may render its support for the development of small and medium-sized enterprises (SMEs) in Azerbaijan.

 A source told Trend that the assistance may be rendered by means of opening lines of credits for local banks. 

"Thus, the ADB wants to provide support to banks in Azerbaijan and contribute to the development of SMEs," said the source, mentioning that the implementation of any concrete project is not currently on agenda and the government does not hold any discussions with the Bank in this regard.  

Financing of SMEs in Azerbaijan is carried out by a number of organizations, including the National Fund for Entrepreneurship Support, State Agency for Agricultural Credit, banks and non-bank credit organizations.

Moreover, a number of international financing organizations such as the Black Sea Trade and Development Bank (BSTDB), the European Bank for Reconstruction and Development and the International Finance Cooperation allocate credits for the support of small and medium entrepreneurship in the country.  

The ADB earlier approved a $500 million loan to help Azerbaijan maintain social spending, create jobs, and diversify its economy to mitigate the adverse impact of a crash in oil prices.

In addition to the loan, ADB will provide technical assistance of $1.2 million to help design reforms to macro-fiscal management, state-owned enterprises, and the finance sector. The capacity of government departments in implementing the reforms will also be strengthened.

Also, the Bank will provide $1 billion in private and public sector assistance to expand Azerbaijan’s Shah Deniz II, one of the world’s largest gas fields. 

Azerbaijan became a member of ADB in 1999 while the country’s share in the bank’s capital amounts to 0.5 percent. The bank has so far allocated some $2.8 billion to finance different projects.

URL: http://www.today.az/news/business/156870.html

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