EBRD considering number of Azerbaijani banks for cooperation in 2023

By Trend

There are number of banks in Azerbaijan that the European Bank for Reconstruction and Development (EBRD) currently considers for cooperation in 2023, and subject to the positive developments in the financial metrics of these local banks, EBRD will be able to offer new loans to Azerbaijani banks in the near future, Kamola Makhmudova, head of EBRD in Azerbaijan, said in an exclusive interview with Trend.

"We are currently looking at expanding our partner banks on Trade Finance and MSME lending (SME Competitiveness / Green and Women in Business – subject to the appetite from the local banks)," she noted.

Makhmudova pointed out that EBRD, in line with the Azerbaijan Country Strategy for 2019-2024, aims to strengthen the resilience of the local Financial Institutions by Developing Financial Markets.

"This stipulates sustainable funding structure and sound risk management practices of banking sector. In order to meet these objectives, EBRD is actively engaged in discussions with the Central Bank of Azerbaijan to improve the conditions in Financial Markets for IFI Bond issuance, Green bonds and derivatives / securitization.

Besides these, EBRD has implemented two Technical Assistance programs in Azerbaijan, namely Azerbaijan Agriculture Financing Facility and PFI (Participating Financial Institutions) Capacity Building Program in 2018-2022. One of the programs – PFI Capacity Building Program – run over the course of 2019-2022 and assisted local banks in identifying the gaps in their internal practices, while developed respective action plans to allow local banks in closing these gaps," she said.