EFSE expands partnership with Bank Respublika through EUR 15 million local currency investment to boost MSME lending in Azerbaijan

Baku, 17 June 2025 – The European Fund for Southeast Europe (EFSE) has expanded its partnership with Bank Respublika by providing a new investment of EUR 15 million equivalent in Azerbaijani manat. The long-term, local currency financing will enable the bank to grow its support for micro, small, and medium enterprises (MSMEs) in Azerbaijan – with a strong focus on businesses owned or led by women.

By providing funds in local currency, EFSE helps protect entrepreneurs from exchange rate risks, strengthening their financial stability and enabling Bank Respublika to broaden its outreach. This investment reaffirms EFSE’s commitment to promoting financial inclusion and empowering underserved businesses across the country.

Jasminka Begert, EFSE Portfolio Manager at Finance in Motion, said: 
"This investment builds on a trusted partnership with Bank Respublika. Long-term, local currency financing is essential for creating a stable operating environment for MSMEs – especially those led by women – and driving more inclusive economic growth."

Tariyel Ismayilov, CEO Respublika Bank shared:  
“This new stage of cooperation with EFSE reflects the strong trust and strategic partnership between our institutions. The funding will allow us to enhance credit support for the real sector — especially small and medium-sized enterprises, which remain a key priority for us. At Bank Respublika, we are committed not only to attracting external financing but to transforming it into tangible opportunities for entrepreneurs across the country. We believe this investment will support job creation, advance sustainable projects and foster the development of Azerbaijan’s non-oil economy”. 
 

About EFSE
The European Fund for Southeast Europe (EFSE) is an impact investment fund to drive economic development and prosperity in Southeast Europe and the Caucasus. Through its two sub-funds—the Regional Sub-Fund (RSF) and the Ukraine Sub-Fund (USF)—EFSE provides tailored financial solutions to foster entrepreneurship, strengthen financial inclusion, and support local economies. EFSE was initiated in 2005 by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors. Finance in Motion GmbH, Germany, serves as EFSE’s Portfolio Manager and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager.  

For more information on the European Fund for Southeast Europe, please visit: www.efse.lu  

 

About Finance in Motion
Finance in Motion structures, manages, and advises almost €4 billion across 10 funds, all classified as SFDR Article 9. These private market funds drive impact for people and planet through regional financial intermediaries, direct investments, advisory and capacity building. Founded in Germany, with local expertise from Latin America to Eastern Europe, it has been investing in emerging markets for over 20 years.  
For more information, please visit: www.finance-in-motion-com    

 

About Bank Respublika
Bank Respublika is an innovative and customer-centric banking institution established in September 2023, offering a wide range of financial products and services tailored to meet the diverse needs of its clientele. With a focus on modern banking solutions, they provide an advanced mobile banking platform known as Mobile Şöbə 3.0, which enables users to manage their finances effortlessly.

The bank’s offerings include personal loans, business loans, mortgages, and cash credit options. Additionally, clients can access online credit payments, credit cards, and micro/agribusiness loans, ensuring a comprehensive suite of financial services. Their services also extend to money transfers, deposit accounts, and business banking essentials such as business cards and guarantees.

With multiple branches throughout Azerbaijan, including regional locations like Qəbələ and Goranboy, Bank Respublika prioritizes customer accessibility and convenience. Their commitment to excellence and innovation positions them as a reliable partner for individual and business banking needs across the nation. For inquiries, customers can reach out via email or contact their central office for assistance. 
 

 

Media Contacts

EFSE: Nusha Westhoff
Director Marketing & Communications
Mobile: +49 69 271 035-789
press@efse.lu

Bank Respublika: 
info@bankrespublika.az 
www.bankrespublika.az