The successful completion of a programme to support capacity building of Azerbaijan’s financial institutions was marked at an event in Baku on Friday.
Funded by the European Bank for Reconstruction and Development (EBRD), the European Union (EU) and Türkiye, this programme aimed at strengthening resilience of local financial system and fostering lending to local micro, small and medium sized enterprises (MSMEs).
Taking place from 2019 to 2022, it involved four financial institutions: Bank Respublika, Unibank, TuranBank and MuganBank and covered two key pillars:
The first focused on strengthening strategy and business planning, risk management, IT, compliance and non-performing loans resolution. Feasibility studies have identified development needs and action plans were developed in close consultation with each of the banks. The second pillar aimed at expanding access to finance MSMEs by developing lending operations for individual banks, marketing strategies, training of staff and setting up monitoring and recovery units.
Originally designed in response to the 2015 crisis aftermath, the Covid-19 outbreak generated multiple economic shocks reverberating across both Azerbaijan and global economies, making this intervention even more relevant and demanded.
‘’A resilient financial system has flexibility to respond most efficiently to different crises, and support stronger growth of the economy, including boosting access to finance for small companies. Today we witness tangible results of our intervention, I want to congratulate our partners, local banks on this success and thank our longstanding donors, the EU and Türkiye for their continuous support, ‘’ said Kamola Makhmudova, Head of EBRD in Azerbaijan”
“The EU supports investment in Azerbaijan in the context of the Eastern Partnership Economic and Investment Plan. Earlier this year, Commissioner Varhelyi announced the investment target of €2b for Azerbaijan and we are working closely with IFIs and EU Member States to make this a reality. EU4Business is a key initiative in this regard and I am happy that our cooperation with Azerbaijan is bearing fruit. The successful completion of this joint technical cooperation programme is a witness to our strong partnership, with the government of Azerbaijan, with the business in the country and with our implementing partners” noted Peter Michalko, Head of the European Union (EU) Delegation to Azerbaijan.
"Turkey is glad to provide support to this flagship programme in cooperation with EBRD. In this event, we had the chance to clearly see the concrete results of the programme. Türkiye is highly pleased to see that this programme has been successfully implemented and is sure that the outputs will pave the way to further strengthen the economy of Azerbaijan’’ noted Bengü Aytekin, Head of Department for Multilateral Development Banks in Ministry of Treasury and Finance.
The EBRD is an important institutional investor in Azerbaijan. To date, the Bank has invested more than €3.6 billion in 181 projects there. The Bank’s strategy in the country focuses on helping Azerbaijan to diversify its economy and develop the private sector in non-oil sectors.
Bank Respublika is the 5th largest bank in Azerbaijan with the 6th widest distribution network (32 branches with more than one thousand employees, 73 ATMs and info-kiosks). The bank primarily focuses on providing services to MSMEs and corporate clients.
TuranBank is the 9th largest bank in Azerbaijan and operating through the 11th widest distribution network with 19 sales network, more than six hundred employees, 33 ATMs and info-kiosks and 223 POS-terminals.
Muganbank is the 12th largest FI operating in Azerbaijan, with a head office located in Baku and a network of 22 branches and 10 sub-branches 565 employees, 52 ATMs and more than 450 POS-terminals. Muganbank’s primary focus is corporate and MSMEs clients.
Unibank is the 6th largest bank in Azerbaijan operating through the 5th widest distribution network with 30 branches, more than 1800 employees, 125 ATMs. The bank primarily focuses on providing services to retail customers, MSMEs and corporate clients, as well as investment services via Unicapital Investment Company (100% owned by Unibank, which also took part in the Program).
Source: Trend.az
