International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has agreed to loan USD 7 million to TuranBank, a microfinance institution (MFI) in Azerbaijan, in an effort to help the MFI increase its lending to rural micro- and small enterprises (MSEs). Since 2009, TuranBank has participated in IFC’s Corporate Governance Advisory Services Project as well as IFC’s Financial Markets Crisis Management Project, which have assisted the MFI in developing corporate governance and risk management systems. Participation in the two projects, which is now completed, “are key factors that led IFC to provide this loan,” says IFC senior manager Ed Strawderman.
By Rohan Trivedi, Research Associate
About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reports net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent and total investment mobilization of USD 18.4 billion to 528 projects.
TuranBank is a deposit-taking microfinance institution (MFI) that was founded in 1992 and is based in Azerbaijan. TuranBank offers credit, voluntary savings and fund transfer services through 11 branches across the country. As of March 31, 2011, TuranBank reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 171 million, a gross loan portfolio of USD 141 million and 8,500 active borrowers.
Sources and Additional Resources:
 IFC Press Release: “IFC Supports Turan Bank [sic] to Increase Micro-lending in Azerbaijan, Boosting Rural Economy”, http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/F3C727ADA09B7335852578B6003E05F3?OpenDocument
MicroCapital.org story, June 16, 2011: “MICROCAPITAL BRIEF: IFC to Provide Local Currency Loans Worth Total of $13m to FINCA Azerbaijan, FINCA Kyrgyzstan to Expand Access to Microfinance”, http://www.microcapital.org/microcapital-brief-ifc-to-provide-local-currency-loans-worth-total-of-13m-to-finca-azerbaijan-finca-kyrgyzstan-to-expand-access-to-microfinance/
MicroCapital Universe Profile: International Finance Corporation (IFC), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29 MicroCapital Universe Profile: Turan Bank, http://www.microcapital.org/microfinanceunivervse/tiki-index.php?page=TuranBank
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