Rabitabank signs credit agreement of $5,000,000 with US investment company

The agreement was ratified by the Oversees Private Investment Corporation -OPIC and the funds, raised for 10 years, will be used for assistance to small and middle entrepreneurship in Azerbaijan.

"New credit lines from the US investment company will allow to expand bank's potential in financing small and middle businesses among existent and new clients of Rabitabank. The credit line, approved by OPIC, will be accompanied by a long-term consultation program, presented by the US company, specialized on consultations to financial sector and will be designed for such spheres as assets and passives regulation and risk management.

We do hope that our cooperation with EBC will further expand in direction of new credit lines", Elchin Gasymov, deputy chairman of Rabitabank's Board said commenting on the new credit agreement.

Rabitabank has a broad experience of financing small and middle entrepreneurship in Azerbaijan, which accounts for over 40% of the current credit portfolio of the Bank/ In order to finance such projects Rabitabank has raised funds from a number of international financial institutions, in particular from the International Financial Corporation (IFC), European Bank for Reconstruction and Development (EBRD) as well as the Islamic Development Corporation (ICD).

Rabitabank has been functioning in Azerbaijan since 1993. As of February 29 of 2006 the bank's assets reached $100,000,000, total capital $16,000,000. The bank's network of branches is composed of 15 affiliates with 6 of them in Baku and 9 in country's regions.

WorldBusiness Capital (WBC) is a commercial finance company specializing in loans that help small and midsize businesses compete in international emerging markets. The In 2003 WBC concluded an agreement with OPIC for expanded potential of financing small and midsize businesses.

Overseas Private Investment Corporation (OPIC) is a state agency of the United States created in 1971. It helps US companies to invest outside the United States, supports economic development of emerging markets, assists private sector in management of risks, connected with direct foreign investments and supports the external policy of the United States. Financing of projects and insurance of political risks by OPIC helps US companies to invest into over 150 emerging markets throughout the world. Though 36 years of its activity OPIC has encouraged investments of a total of $164 billion, which resulted in creation of 732,000 new jobs and gaining profits in the amount of $13 billion by the countries where projects were implemented.