The EBRD is supporting the expansion and diversification of Azerbaijan’s Bank Respublika with a US$6mn co-financing facility. Bank Respublika, a joint-stock company founded in 1992, is Azerbaijan’s fifth largest bank by total assets.

The credit line will assist Bank Respublika in the diversifaction of its funding base, support asset growth and stimulate lending to small and medium-sized enterprises (SMEs). The co-financing facility will be used for lending to local private companies that have increased need for financing.

This project will support financial intermediation and increase competition in the banking sector of Azerbaijan.

Aygen Yayikoglu, head of the EBRD Baku office, says the financing will contribute to the development of SMEs in Azerbaijan’s non-oil sector and will underpin sustainable growth of both the national economy and help diversify Bank Respublika’s portfolio.

To date, the EBRD has signed more than 30 investments worth more than US$900mn in Azerbaijan. The bank is focused on the development of a strong financial sector, the support of micro, small and medium-sized enterprises and the development of the non-oil private sector.