EBRD and AccessBank Partner to Boost SME Financing in Azerbaijan with €15 Million Risk-Sharing Facility

EBRD and AccessBank Partner to Boost SME Financing in Azerbaijan with €15 Million Risk-Sharing Facility

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has relaunched its Risk-Sharing Facility (RSF) in partnership with AccessBank to boost financing for small and medium-sized enterprises (SMEs) in Azerbaijan. Through this €15 million agreement, the EBRD will share up to 50% of the risk on loans provided by AccessBank to local SMEs, enabling more businesses to access much-needed funds. The initiative will also help AccessBank diversify its funding sources and compete more effectively in the local banking sector. This partnership aims to support the growth of entrepreneurship and contribute to Azerbaijan’s economic development.

(PRESS RELEASE) LONDON, 10-Sep-2024— /EuropaWire/ — Azerbaijan’s business landscape received a significant boost with the relaunch of the Risk-Sharing Facility (RSF) in a strategic partnership between the European Bank for Reconstruction and Development (EBRD) and AccessBank. The €15 million agreement aims to enhance lending capacity to local small and medium-sized enterprises (SMEs), addressing a key gap in financing for Azerbaijani businesses.

The RSF will allow AccessBank to provide a larger number of loans to SMEs, with the EBRD sharing up to 50 percent of the risk for individual loans. This initiative is expected to improve access to financial resources for smaller businesses that have traditionally faced challenges in securing necessary funding.

Beyond expanding loan opportunities, the facility will enable AccessBank to diversify its funding sources and strengthen its competitiveness within the local banking sector, often dominated by larger institutions.

The signing of the agreement took place at AccessBank’s headquarters in Baku, with key representatives from both institutions in attendance. Elisabetta Falcetti, EBRD Managing Director for Türkiye and the Caucasus, highlighted the importance of this relaunch: “This partnership not only increases funding for SMEs but also provides AccessBank with the tools and knowledge to enhance its SME financing capabilities.”

David Tsiklauri, Chairman of the Management Board at AccessBank, emphasized the broader impact of the agreement: “This collaboration with the EBRD will fuel entrepreneurship in Azerbaijan and contribute to overall economic growth.”

The RSF is part of the EBRD’s broader Small Business Initiative, which supports private sector development in its regions of operation. With a strong track record of partnering with local financial institutions, the EBRD has facilitated over €1.07 billion in loans to SMEs through the RSF program to date.

AccessBank, established in 2002, specializes in SME support, while the EBRD remains Azerbaijan’s largest institutional investor, having committed more than €3.7 billion to 190 projects aimed at boosting the country’s economic diversification.

This renewed partnership marks a pivotal step in strengthening Azerbaijan’s private sector and fostering long-term economic resilience.

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SOURCE: EBRD