BAKU, Azerbaijan, September 7. The loan,
allocated by the Asian Development Bank (ADB) to Azerbaijani Bank
Respublika will be repaid in 2026-2027, ADB said.


The $34 million equivalent loan has been fully disbursed and is
expected to be fully repaid in two tranches in December 2026 and
February 2027. AZN 14.5 million of the loan is expected to be
repaid in December 2026, while the remaining AZN 19.5 million is
due for repayment in February 2027.


The project addresses the financing gap that exists in MSME
lending, in particular to women and the agriculture sector. The
agriculture sector and women MSMEs play a key role in Azerbaijan's
economy. The project will support improved access to finance
through this local currency loan







"The transaction supports the following key priorities of ADB's
Strategy 2030: (i) addressing remaining poverty and reducing
inequalities (OP1), (ii) accelerating progress in gender equality
through the gender action plan (OP2), and (iii) promoting rural
development and food security (OP5). The project is considered
inclusive business since it supports BR in expanding access to
financing for women and agricultural borrowers especially in the
underserved rural and microenterprise segments. The project
supports (i) enhancing financial inclusion for women-owned
businesses and farmers, ii) strengthening economic activity and
employment in non-hydrocarbon sectors and (iii) promoting regional
economic development in Azerbaijan," said the Bank.


Reportedly, the transaction is consistent with Strategic Pillar
I of ADB's Country Partnership Strategy (CPS) 2019-2023 for
Azerbaijan which promotes i) a sustainable and diverse non-oil
private sector through strengthening MSMEs and ii) a deeper and
more inclusive financial sector; as well as all three Strategic
Pillars promoting gender equality by enhancing the business climate
and access to credit for female entrepreneurs. The transaction also
aligns with ADB's Country Operations Business Plan (COBP) for
Azerbaijan for 2021-2023 which calls for promoting the private
sector, including SMEs, agriculture, manufacturing, and finance
enterprises through credit lines.