AccessBank, AZE, FöK IV

completed

The FC loan of USD 20.0 million complements the previous activities in the field of sustainable economic development in Azerbaijan. Since its establishment in June 2002, the ABA (known as the Microfinance Bank of Azerbaijan, MFBA until 2008) has been a reliable partner and leader in lending to micro and small enterprises (MSEs) in Azerbaijan. The FC loan is intended to refinance loans to MSEs in order to cover their needs for medium and long-term investment financing and working capital loans. Since the oil industry still accounts for 50% of GDP, micro and small enterprises are of great importance for the diversification of the Azerbaijani economy. By providing refinancing, KfW can therefore contribute to further expanding ABA's business activities and reducing the dependence of the Azerbaijani economic structure on oil and gas. Improving access to credit for MSEs can support the stabilization and creation of employment and income opportunities. Since the ABA has a strong branch network in the regions, access to financing for MSEs in rural and agricultural areas can also be improved. Due to its good market position, the ABA has a role model function in terms of lending to MSEs in the Azerbaijani financial sector. This can contribute to a deepening and broadening of the financial system through imitation effects.