MFBA receives a $5mln loan from OFID

It should be pointed out that the funds obtained within this loan will be directed to support micro, small and medium businesses in Azerbaijan. The agreement is concluded for five years and it is the first experience of OFID in the area of making investments in Azerbaijan.

"We are very glad to see such an organization like OFID among our financial partners –especially due to the fact, that the OFID's mission is to use natural resources for the improvement of the social and economic sphere in the countries with developing economy. That's what Azerbaijan is striving for using its gas and oil resources. That's the first investment of OFID into Azerbaijan, which acknowledges the leading position of our bank in eradication of poverty in Azerbaijan through micro and small business development. It should also be noted that this loan is the largest among those, which have been lent to MFBA, apart from the loans of shareholders," said MFBA General Manager Andrew Pospielovsky after meeting OFID leaders in Vienna.

Generally, MFBA has so far attracted loans for the amount of more that USD 62 million from international financial institutions for the development of micro and small business, which made MFBA the most important tool in attraction of foreign investments in non-oil sector.

Micro Finance Bank of Azerbaijan with 100% foreign capital is owned by six shareholders: European Bank of Reconstruction and Development, the International Finance Corporation, the Black Sea Trade and Development Bank, KfW Development Bank – the German Development Bank of the German Government, and LFS Financial Systems GmbH – a German consulting company, as well as AccessHolding which has recently become a member of the shareholders team.  APA-Economics