The European Investment Bank and Bank Respublika signed a €10 million loan agreement to boost financial access for small businesses

Baku, May 06, 2024. EIB Global, the arm of the European Investment Bank (EIB) for financing activities outside the European Union, has signed a €10 million loan agreement with Bank Respublika to support micro small and medium-sized enterprises (MSMEs) in Azerbaijan. This agreement will promote financial inclusion by providing loans to small businesses at competitive terms and with the option to be disbursed in local currency, to boost investments, growth and employment.  

The loan is being provided as part of EIB’s MSME Outreach Initiative for the Southern Caucasus, which aims to improve access to finance for MSMEs. The initiative will stimulate competition in the banking sector and increase the quality and quantity of finance accessible to small businesses. It will support creation or maintaining of some 26,500 jobs in the Southern Caucasus region, fuelling private sector-driven growth and promoting social inclusion.

The operation contributes to the goals of the European Union’s Economic and Investment Plan (EIP) for the Eastern Partnership, in line with the flagship initiative to support 25,000 MSMEs in Azerbaijan.

EIB Vice-President Teresa Czerwińska, responsible for the Bank’s activities in Azerbaijan, remarked, “The EIB is pleased to support small businesses in Azerbaijan. Thanks to the partnership with Bank Respublika, this loan will promote financial inclusion for underserved MSMEs and increase their contribution to the economy. It will contribute to a diversified, sustainable and innovative economy in line with the European Union’s Economic and Investment Plan in the country.”

Director-General for Neighbourhood and Enlargement Negotiations of the European Commission Gert Jan Koopman emphasized, “The EU places a strong focus on supporting micro, small and medium-sized enterprises – a key part of the implementation of the EU’s Economic and Investment Plan in Azerbaijan. This loan is an important milestone of EIB activity in Azerbaijan and a welcome opportunity to support business opportunities and economic development, improving livelihoods across the country.”

Tariyel Ismayilov, CEO of Bank Respublika remarked, “We are proud to be the key partner bank in Azerbaijan for the EIB, the world's largest financial institution. The signing of this agreement is another important indicator of the confidence of international financial institutions in both the stability of the country’s banking system and the reliability of Bank Respublika. Attracted funds will allow us to strengthen credit support of real sector which is our main priority, in particular small and medium-sized businesses, contributing to the economic development of the country”.

About Bank Respublika

Bank Respublika was established in 1992 and is one of the five leading banks in Azerbaijan. The bank's shareholders include Germany's largest financial institution - Sparkassen International Development Trust (a member of the Sparkassen-Finanzgruppe financial group). The bank has one of the highest international ratings in the banking sector of Azerbaijan - a rating of "B2" with a "Stable" outlook from Moody's.

About the EIB and EIB Global

The European Investment Bank (EIB) is the long-term financing institution of the European Union, owned by its Member States. It provides long-term finance for sound investments in pursuit of EU policy goals, supporting projects in four priority areas: infrastructure, innovation, climate and environment, and SMEs.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, contributing to the three overarching priorities of the European Union: the European Green Deal, the Global Gateway and jobs, and sustainable and inclusive growth. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society in close cooperation with other multilateral development banks. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.