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.
The agreement will promote financial inclusion by providing loans to small businesses on preferential terms and with the option of disbursal in local currency, boosting investment, growth and employment.
The loan is part of the EIB’s MSME Outreach Initiative for the Southern Caucasus, which works to improve access to finance for MSMEs and will help create or maintain some 26,500 jobs in the Southern Caucasus region, fuelling private sector-driven growth and promoting social inclusion.
The operation also furthers the objectives of the Economic and Investment Plan for the Eastern Partnership, the flagship EU initiative to support 25,000 MSMEs in Azerbaijan.
Director-General for Neighbourhood and Enlargement Negotiations of the European Commission, Gert Jan Koopman, said that the EU places a “strong focus” on supporting micro, small and medium-sized enterprises.
“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,” he said.
