The raised funds will be allocated for financing of micro and small business

Baku, Finance Time.   IFC, a member of the World Bank Group, is providing a $15 million loan to Azerbaijan’s AccessBank to increase funding for micro and small businesses in Azerbaijan, supporting job creation and economic development.

This IFC loan will help the bank expand its lending to small, low-income entrepreneurs who are often underserved by commercial banks. Through its extensive branch network the bank will provide much-needed finances, particularly in rural areas, thereby reducing poverty in these regions.

“Growth of micro and small businesses is often hampered by a lack of access to financial services, in particular in the regions of the country and for small agricultural businesses, stated Michael Hoffmann, General Manager of AccessBank. “AccessBank was created to close this gap, to create a more inclusive financial system. IFC’s loan will help us move forward in this direction.”

Thomas Lubeck, IFC Regional Manager for the South Caucasus, stated, “Through this project, AccessBank, our long-term partner, will increase lending to micro and small businesses engaged in sectors like trade, services, and agriculture. This cooperation is yet another step forward in implementing our strategy in Azerbaijan to foster sustainable growth and diversification of the economy through investment and advisory support to the non-oil sectors.”

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. IFC helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments.

AccessBank was established to provide access to financial services for Azerbaijan’s micro and small businesses and low and middle income households. AccessBank is recognized as the Most Reliable bank in Azerbaijan by Fitch International Ratings ('BB+ Outlook Stable’), and as “The Best Bank in Azerbaijan” by Global Finance (2011) and Euromoney (2012, 2011 and 2010) in their annual awards as well as “The Bank of the Year” by The Banker (2011). AccessBank is 100% foreign owned by six shareholders, consisting of: the European Bank of Reconstruction and Development, the International Finance Corporation, the Black Sea Trade and Development Bank, KfW Development Bank – the Development Bank of the German Government (20% per each), Access Microfinance Holding acting in microfinance field as a strategic investor (16.5%), and LFS Financial Systems GmbH – a German consulting company (3.5%).