MICROCAPITAL BRIEF: Bank Respublika, a Private Commercial Bank in Azerbaijan, Reduces Interest Rates to Expand Lending for Small and Medium-Sized Enterprises

Bank Respublika, a private commercial bank in Azerbaijan, has reduced interest rates in order to increase lending flow for small and medium-sized enterprises. According to an unnamed bank official, “High levels of liquidity allow the bank to offer the above loan products on unrestricted long-term basis to entities engaged in entrepreneurial activity.” As of April 1, 2010, Bank Respublika held total capital of approximately AZN 56.1 million (USD 9.7 million) and total assets of AZN 334.5 million (USD 415.5 million).

About Bank Respublika:

Bank Respublika, which began operations in May 1992, is private commercial bank in Azerbaijan. It offers various financial services including “cash and settlement services, various consumer and business loans, deposits, money transfers, documentary transactions, travel checks, safekeeping boxes, and remote customer services.” The bank, although headquartered in Baku, Azerbaijan, currently has 34 branch offices across the country. The bank has received financing from both the International Finance Corporation (IFC), the investment arm of the World Bank, and The European Bank for Reconstruction and Development (EBRD), a financial institution “owned by 61 countries and two intergovernmental institutions.” The funds from these development finance institutions have enabled Bank Respublika to provide loans to micro-, small, and medium-sized enterprises (MSMEs). As of April 1, 2010, Bank Respublika held total capital of approximately AZN 56.1 million (USD 69.7 million) and total assets of AZN 334.5 million (USD 415.5 million).

By Conner Brannen, Research Assistant

Sources and Additional Resources:

Trend: “Azerbaijani bank expands lending to small and medium business,” June 16, 2010: http://en.trend.az/capital/banks/1705535.html

MicroCapital Universe Profile: Bank Respublika: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+Respublika

MICROFINANCE EVENT: Fifth Annual Azerbaijan Microfinance Conference, October 5-6, 2010, Baku, Azerbaijan: https://www.microcapital.org/microfinance-event-fifth-annual-azerbaijan-microfinance-conference-october-5-6-2010-baku-azerbaijan/

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