Regional development bank Black Sea Trade and Development Bank (BSTDB) is participating with an equity investment of US$1.75mn for a 35% share in the establishment of Azerbaijan Microfinance Bank. The other founding shareholders are: the European Bank for Reconstruction and Development (25%), the International Finance Corporation (35%) and LfS Financial System GmbH (5%).
The Azerbaijan Microfinance Bank will provide financial services to micro and small-sized enterprises in Azerbaijan. The project aims to develop institutional micro finance, encourage entrepreneurship, support the financial sector by sharing best practice, and enhance economic activity in private sector for small businesses.
Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. With an authorised capital of SDR1bn (US$1,325 billion), the bank supports economic development and regional cooperation by providing financing, guarantees, and equity for projects supporting both public and private enterprises in its member countries. Since the commencement of operations in 1999, BSTDB’s board of directors has approved 47 projects totalling over US$400mn.