Project description
and objectives:
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The EBRD is considering to provide a credit line of USD 13 million to Azerdemiryolbank to support the Azeri economy via credits to the country’s micro and small and medium-sized business sectors. Of the total, $3 million will be provided for SME lending and $10 million for lending to the micro sector.
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Transition impact:
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The proposed credit line is supporting EBRD’s country strategy for Azerbaijan and will further support the increase of financial intermediation in the market and promote competition. Supporting the development of the private companies and banking sector in Azerbaijan by increasing medium-term financing to the productive sector of the economy through domestic banks would facilitate the strengthening of domestic production. Furthermore, the loan will increase availability of funds to Azeri small and medium-sized companies to facilitate their expansion.
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The client:
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Azerdemiryolbank, an open joint-stock company, is one of the leading private banking institutions in the Republic of Azerbaijan, majority owned by private individuals.
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EBRD finance:
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The credit line will be provided under the Azerbaijan Financial Sector Framework.
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Total project cost:
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USD 13 million.
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Environmental impact:
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Screened FI. Representatives of Azeridemiryolbank attended the EBRD’s Environmental and Social Risk Management Workshop in 2003 and 2006. As such, it is familiar with the importance of environmental and social risk management.
PR 2: Labour and Working Conditions. Azerdemiryolbank should ensure that its human resource policies are compliant with EBRD's Performance Requirement 2 ("PR2") on Labour and Working Conditions. Azerdemiryolbank should confirm to the Bank that it complies with PR 2 or, if not, provide the Bank with a plan of action to achieve compliance in a reasonable time. Such compliance includes the implementation of a grievance mechanism for employees.
PR9: Financial Intermediaries. Azeridemiryolbank applies its environmental and social risk management procedures only to transactions financed under EBRD and other international credit lines and to "large loans" (> $100,000). In those cases, the branch credit officer is responsible for screening and identifying risks. When necessary, a credit officer from headquarters will accompany the local branch credit officer on the site visit to those transactions considered to pose potentially unreasonable environmental risks. Azerdemiryolbank will need to review its existing procedures in the context of the new Performance Requirements and ensure that acceptable environmental procedures are applied across the entire commercial lending portfolio.
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Technical
cooperation:
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Azerdemiryolbank has been participating amongst 7 other banks in technical assistance programmes provided by EBRD under Azerbaijan Financial Sector Framework to improve the bank’s SME and micro lending capacity as well as amongst 4 other banks under Medium Co-financing facility. The technical assistance programmes are being funded by ETC Multi Donor Initiative Fund and the EBRD Shareholders Special Fund.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Shahin Y. Mirzoyev, Deputy Chairman of the Management Board
Tel: +994 12 444 7283
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EBRD contact:
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Ainura Guppy, Operation Leader: guppya@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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Public Information
Policy (PIP):
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The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
Text of the PIP
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Independent Recourse
Mechanism (IRM):
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The EBRD has established the IRM to give local groups that may be directly and adversely affected by a Bank project a means of raising complaints or grievances with the Bank, independently from banking operations.
Guidelines for Making a complaint and the Rules of procedures
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