EBRD allocates first loan for Azerbaijan under Youth in Business program

BAKU, Azerbaijan, December 18. The European
Bank for Reconstruction and Development (EBRD) is extending a loan
of up to US$20 million (€17.1 million) to AccessBank, one of the
leading Azerbaijani banks focusing on micro, small and medium-sized
enterprises (MSMEs), Trend reports via the EBRD.

Under the agreement, AccessBank will channel EBRD funds to
youth-owned and -led

MSMEs across Azerbaijan, providing much-needed capital to help
them grow, innovate and contribute to the country’s economic
development.

The loan will also enable AccessBank to reach a strategically
important segment of the market, while demonstrating the strong
investment case for youth-owned and -led enterprises in
Azerbaijan.

The European Union (EU) is supporting the loan through its
European Fund for Sustainable Development Plus (EFSD+) Financial
Inclusion in the Neighbourhood program in the form of first-loss
risk cover.

This is the first loan under the EBRD’s Youth in Business
program in Azerbaijan, marking a significant milestone in
supporting the country’s next generation of entrepreneurs. MSMEs
are the backbone of strong economies and supporting youth
entrepreneurship is critical to Azerbaijan’s efforts to diversify
its economy and strengthen its private sector.

The EBRD’s Youth in Business program is already active in
Central Asia, Egypt, Morocco, Türkiye and the Western Balkans. It
is designed to help MSMEs owned or managed by young entrepreneurs
access both financial and non-financial services.

The EBRD is a leading institutional investor in Azerbaijan,
having invested €3.7

billion through 200 projects in the country. The Bank’s strategy
for Azerbaijan focuses on supporting the country’s non-oil sector
and local lenders, as well as boosting investment in the green
economy.