EBRD, EU and Bank Respublika to support Azerbaijani MSMEs
Nov 23, 2024
- EBRD lends up to US$ 7.5 million to longstanding client Bank Respublika
- EU-backed programme provides technical support and investment grants
- First SMECI project in Azerbaijan, expanding local MSMEs’ access to finance
The European Bank for Reconstruction and Development (EBRD) is extending a loan of up to US$ 7.5 million (€7 million) in local currency to Bank Respublika, one of Azerbaijan’s leading commercial banks. That partner bank will lend the proceeds on to micro, small and medium-sized enterprises (MSMEs).
The loan agreement was signed at the UN Climate Change Conference in Baku (COP29), with the financing being provided under the Eastern Partnership SME Competitiveness and Inclusion Programme (SMECI). That programme is supported by the European Union (EU) through grant funding to ensure that MSMEs have access to the resources and guidance needed for successful implementation of projects.
The EU’s support has been instrumental in unlocking new opportunities across the Caucasus. Just weeks ago, the EBRD and Bank Respublika signed a US$ 7.5 million (€7 million) MSME loan under the European Fund for Sustainable Development Plus (EFSD+) Guarantee Programme.
This financing package is the first SMECI project in Azerbaijan. By bolstering MSMEs’ access to finance, the EBRD, the EU and Bank Respublika are continuing to build resilience in Azerbaijan’s MSME sector, strengthening private-sector development and diversification of the economy.
Francis Malige, Managing Director for Financial Institutions at the EBRD, said: “I’m happy to be here at COP29 in Baku, providing support for MSMEs with the EU and our trusted partner Bank Respublika. Together, we’re strengthening the foundations of a sustainable and inclusive economy in Azerbaijan.”
Tariel Ismayilov, Chairman of the Management Board of Bank Respublika said: “For the second year in a row, we have been EBRD's top partner in trade financing, and we are pleased to begin cooperation in green technology. It is especially gratifying for us, as this agreement was signed at COP29 held in our country. Like previous EBRD loans, this loan will support Azerbaijani entrepreneurs, helping them to grow their businesses by adopting eco-friendly technologies. We deeply value our partnership with EBRD—a leading global financial institution and a pioneer in green economy financing—and we appreciate their support.”
Peter Michalko, Ambassador of the European Union to the Republic of Azerbaijan said: “Micro, small and medium-sized enterprises have the potential to create jobs and drive economic growth and that is why this loan is an important achievement. The EU places a strong focus on supporting business - a key part of the implementation of the EU’s Economic and Investment Plan for Azerbaijan.”
Bank Respublika is a longstanding EBRD partner and one of Azerbaijan’s leading commercial banks. It has a strong focus on the SME sector and financial inclusion, supporting the growth of local businesses across the country.
The EBRD is a leading institutional investor in Azerbaijan, having invested over €3.7 billion in 191 projects there.
LATEST
Jul 01, 2025
Azerbaijan inks loan agreement with World Bank to expand renewable energy projects
News
The government of Azerbaijan and the World Bank have signed a loan agreement on “the project to expand the use of renewable energy sources in Azerbaijan”.
Jun 30, 2025
Azerbaijani ‘Cybersecurity’ course now available from EU4Digital Academy
News
Citizens and small and medium-sized enterprises (SMEs) in Azerbaijan are invited to learn how to secure their personal or professional digital life with the EU4Digital Academy ‘Cybersecurity‘ course.
Jun 27, 2025
EBRD launches program to improve efficiency of water sector in Azerbaijan
News
The European Bank for Reconstruction and Development (EBRD) has announced the launch of the Financial and Operational Performance Improvement Program (FOPIP) for the State Agency for Water Resources of Azerbaijan and its subordinate entities.
Jun 19, 2025
EuroVillage 2025 in Baku
News
EuroVillage 2025, a vibrant open-air festival hosted by the European Union is taking place on 22 June at Baku boulevard.
Jun 13, 2025
The third meeting of Azerbaijan-EU Energy Dialogue was held in Brussels
News
The third meeting of High-Level Energy Dialogue established to develop a strategic energy partnership between Azerbaijan and the European Union (EU) was held in Brussels, the Kingdom of Belgium, informs via Ministry of Energy.
May 30, 2025
EBRD and Unibank to support trade finance in Azerbaijan
News
The European Bank for Reconstruction and Development (EBRD) has approved a trade finance line of up to €4.4 million for Azerbaijani lender Unibank under its Trade Facilitation Programme (TFP).
May 19, 2025
EU delegation to Azerbaijan organizes Europe Day in Baku
News
Baku hosted an official reception Thursday organized by the European Union (EU) delegation to Azerbaijan, marking the Europe Day.
May 13, 2025
Azerbaijan and EU mull deepening cooperation in several areas
News
Azerbaijan and the European Union discussed deepening cooperation in several areas, Azerbaijani Economy Minister Mikayil Jabbarov said on X.
May 12, 2025
Discussions were held on the supply of "green energy" and hydrogen from Azerbaijan to Europe
News
A meeting was held between the Minister of Energy, Parviz Shahbazov, and the Director-General for Eastern Neighborhood and Enlargement Negotiations (DG ENEST) of the European Commission, Gert Jan Koopman.
Apr 26, 2025
Ilham Aliyev received EU High Representative and Vice-President of European Commission Kaja Kallas
News
On April 25, President of the Republic of Azerbaijan Ilham Aliyev received Kaja Kallas, High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the European Commission.
Apr 18, 2025
The Eastern Partnership Business Forum was held in Warsaw
News
The Eastern Partnership Business Forum was held on April 15–16, 2025, at PGE Narodowy Stadium in Warsaw, bringing together high-level representatives from European Union member states and Eastern Partnership countries to explore current trends in economic cooperation, shared regional priorities, and prospects for future collaboration.
Apr 05, 2025
Baku hosted 11th Southern Gas Corridor Advisory Council Ministerial Meeting and 3rd Green Energy Advisory Council Ministerial Meeting
News
On April 4, the 11th Southern Gas Corridor Advisory Council Ministerial Meeting and the 3rd Green Energy Advisory Council Ministerial Meeting were held at the Gulustan Palace in Baku.
