TODAY.AZ / Business

EIB can provide technical assistance for projects preparation

15 August 2019 [12:31] - TODAY.AZ

By Azernews

By Leman Mammadova

Azerbaijan seeks to further develop its social and economic infrastructure, to advance private sector development, to achieve mitigating and adapting to climate change in cooperation with European Investment Bank (EIB).

So far, the EIB has supported the development of the private sector in the country by providing credit lines to local banks in order to improve access to financing for small and medium enterprises (SMEs), the Bank told Trend.

Cooperation between EIB and Azerbaijan began in 2013 and is expected to develop gradually. Along with the Trans-Adriatic Pipeline (TAP) project, the EIB is also one of the main contributors to the Southern Gas Corridor project.

“In accordance with its mandate, the Bank is ready to intensify cooperation with Azerbaijan in various priority sectors, within the framework of the EU policy,” reads the message.

EIB noted that the long-term financing it offers can be complemented with technical assistance for the preparation and implementation of projects that EIB could mobilize from donors and the EU.

The Bank added that the aim is to achieve a more affordable financing package for the country, bring the expertise of EIB and EU standards.

The EIB is the European Union’s nonprofit long-term lending institution established in 1958 under the Treaty of Rome. As a “policy-driven bank”, whose shareholders are the member states of the EU, the EIB uses its financing operations to bring about European integration and social cohesion. It is the world’s largest international public lending institution.

EU is the largest trading partner of Azerbaijan, as well as the largest investor in the country. Azerbaijan participates in the Eastern Partnership program, which celebrates its 10th anniversary in 2019.

Cooperation between Azerbaijan and the EIB is based on the framework agreement signed in 2013. The Bank financed energy projects in the framework of cooperation with the private sector and allocated loans to local banks.

EIB has allocated 96 million euros to Azerbaijan over the past 10 years in the framework of the Eastern Partnership.

Some 25 million euros was directed to financing small and medium-sized businesses in Azerbaijan. The financial resources support private sector development, job creation and improving living standards.

Total lending of the EIB to the Eastern Partnership countries stood at 8.93 billion euros from 2007 to 2018. EIB’s lending volume in the region reached 632 million euros in 2018.

Earlier, the EIB approved 1.5 billion euros for TAP and 932 million euros for TANAP projects.


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