Azerbaijan’s Bank Respublika raises loan worth $8M

Azerbaijan’s Bank Respublika has signed a loan contract worth $8 million with the Netherlands Development Finance Company (FMO), a Dutch bank, Trend reports with reference to the Bank.

 

A loan for a period of three years was allocated to finance the agricultural sector and small and medium-sized enterprises (SMEs). The funds are also to be used to finance the activities of young entrepreneurs and women entrepreneurs.

The loan will help expand the financing of agriculture in the regions of Azerbaijan, and, in particular, will support SMEs.

"The signing of an agreement with FMO, one of the biggest financial institutions in Europe, speaks of high confidence in our bank and its strategy aimed at supporting the development of SMEs and promoting the creation of new jobs in the country,” said Tariel Ismayilov, chairman of the board of Bank Respublika.

Bank Respublika’s assets as of March 31, 2019 exceeded 1 billion manat, showing a 47 percent increase compared to the first quarter of 2018. In addition, the total capital of the bank increased by 28 percent, the loan portfolio by 45 percent, the deposit portfolio by 60 percent, and the net profit of the bank more than tripled.

Net interest income of the bank doubled in the first quarter of this year and amounted to 8.14 million manats, while net operating profit of the bank increased more than four times and amounted to 2.48 million manats.

Bank Respublika was established in 1992 and is among the ten leading banks in Azerbaijan.

(1.7 manats = 1 USD on June 20)