Baku, 3 December 2024 – The European Fund for Southeast Europe (EFSE) has entered into a significant loan agreement with Bank Respublika, a prominent financial institution in Azerbaijan.
Through this agreement, EFSE will provide USD 21 million in Azerbaijani manats (AZN) with a four-year maturity. The financing aims to strengthen micro, small, and medium enterprises (MSMEs), prioritizing entrepreneurs in regional areas. Bank Respublika’s broad branch network will play a crucial role in channeling these funds to businesses across the country, driving economic activity and regional growth.
“This agreement is yet another significant indicator of international financial institutions’ confidence in both the reliability of Bank Respublika and the resilience of the country’s banking system. We thank our partners at EFSE for their cooperation and are confident that the secured funds will enable us to enhance credit support for our priority real sector, particularly small and medium businesses, thereby contributing to the country’s economic development," noted Tariyel Ismayilov, Chairman of the Management Board of Bank Respublika.
Andrea Hagmann, Chairperson of EFSE’s Board of Directors confirmed: “Together with Bank Respublika, we are deepening our cooperation to deliver impactful financial solutions for entrepreneurs in Azerbaijan. This new loan in Azerbaijani manats underscores the relevance of local currency financing, enabling businesses to grow sustainably while being protected from foreign exchange risks.”
About EFSE
An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the European Eastern Neighborhood Region. EFSE was initiated 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 advisor 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 is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.
For more information, please visit: www.finance-in-motion-com
Media Contacts:
EFSE:Nusha Westhoff
Director Marketing & Communications
Mobile: +49 69 271 035-789
press@efse.lu
