IFC, Rabitabank ink $2m loan deal

The agreement was signed by Rabitabank Board Chairman Zakir Nuriyev and IFC Global Financial Markets Department Officer for Southern Europe & Central Asia Martin Kimmig.

Nuriyev said that the loan comes for 5 years at LIBOR+4.25%. As per the agreement, the IFC may convert the principal to invest for a 10% or 20% equity stake in the bank.

Kimmig said that the Corporation is satisfied with this cooperation and hopes that this credit line will pave the way for great prospects, adding that the IFC is interested in development of non-oil sectors of the economy of Azerbaijan, in particular finance sector.

The IFC will also render $300,000 technical assistance to help the bank acquire international standard maximally. The assistance is aimed at strategic planning, risk management and improvement of information technologies. APA-Economics