MICROCAPITAL BRIEF: Assets of “Several” Microfinance Institutions (MFIs) Frozen by Azerbaijani Government

An anonymous source has informed MicroCapital that several microfinance institutions (MFIs) in Azerbaijan have had their bank assets frozen by the government over the past few months. This reportedly followed statements by an unspecified NGO in the country that the government deemed overly critical. The NGO is said to have had its assets released after paying a “large” fine. The MFIs, however, remain limited to operating on a cash basis.

The Azerbaijani unit of the International Research and Exchanges Board (IREX), a US-based nonprofit organization that aims to support education and independent media in developing countries, reportedly decided to end its operations after its assets were frozen by the government due to a “criminal investigation” that has been launched against “several Azerbaijani and international NGOs.” Further information, including specific details regarding the MFIs whose assets have been frozen, has been withheld by MicroCapital to avoid possible retaliation.

By Makai McClintock, Research Associate

About International Research and Exchanges Board (IREX):
Founded in 1968, International Research and Exchanges Board (IREX) is an international nonprofit organization that aims to support “independent media, quality education and strong communities”. Financial information for IREX is not publicly available.

Sources and Additional Resources:

Panorama Article,  “United States Department of State: Closure of IREX office in Baku will be blow to democracy”, http://www.panorama.am/en/popular/2014/10/13/state-department/

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