TODAY.AZ / Business

EIB reveals loan commitments in country

16 August 2019 [17:18] - TODAY.AZ

By Azernews

By Leman Mammadova

European Investment Bank (EIB) continues its support to the development of the private sector in Azerbaijan within the framework of the EU policy.

As in other EU Eastern Partnership countries, the EIB’s activities in Azerbaijan are aimed at supporting the goals set by the European Neighborhood Policy, the Bank told Trend.

The EIB focuses on financing projects that contribute to the prosperity and expansion of regional integration, which ensures the stability of these regions and helps strengthen intra-regional partnership.

The Bank informed that it has allocated 96 million euros of loans to Azerbaijan since 2014.

“EIB provided a loan of 50 million euros to the country's leading bank, the International Bank of Azerbaijan, to finance projects promoted by small and medium-sized businesses (SMEs) and companies with medium capitalization,” the message reads.

Moreover, in accordance with a loan agreement signed with AccessBank, a leading small business financier in Azerbaijan, EIB provided funds of 45 million euros to support projects of SMEs.

These funds will contribute to the development of the private sector, job creation and improvement of living standards in Azerbaijan.

The Bank’s activities in the Eastern Partnership countries contribute to growth and employment, intra-regional trade, and also help protect the general environment and mitigate the effects of climate change, supporting low-carbon and climate-resilient growth.

“Following the mid-term revision of the external lending mandate, which regulates EIB activities outside the EU, the 4.8 billion euro mandate for 2014–2020 has been increased to 6.65 billion euro. It covers all six Eastern Partnership countries and Russia,” the Bank said.

By late 2018, the volume of loans allocated by the EIB for the Eastern Partnership countries reached more than 10 billion euros, which were used to finance more than 90 investment projects and to support SMEs in the region.

Earlier, the EIB stated that the Bank’s financing to Azerbaijan can be complemented with technical assistance for the project preparation and implementation. The goal is to achieve a more affordable financing package for the country.

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.

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.


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