BAKU, Azerbaijan, September 7. The loan, allocated by the Asian Development Bank (ADB) to Azerbaijani Bank Respublika will be repaid in 2026-2027, ADB said.
The $34 million equivalent loan has been fully disbursed and is expected to be fully repaid in two tranches in December 2026 and February 2027. AZN 14.5 million of the loan is expected to be repaid in December 2026, while the remaining AZN 19.5 million is due for repayment in February 2027.
The project addresses the financing gap that exists in MSME lending, in particular to women and the agriculture sector. The agriculture sector and women MSMEs play a key role in Azerbaijan's economy. The project will support improved access to finance through this local currency loan
"The transaction supports the following key priorities of ADB's Strategy 2030: (i) addressing remaining poverty and reducing inequalities (OP1), (ii) accelerating progress in gender equality through the gender action plan (OP2), and (iii) promoting rural development and food security (OP5). The project is considered inclusive business since it supports BR in expanding access to financing for women and agricultural borrowers especially in the underserved rural and microenterprise segments. The project supports (i) enhancing financial inclusion for women-owned businesses and farmers, ii) strengthening economic activity and employment in non-hydrocarbon sectors and (iii) promoting regional economic development in Azerbaijan," said the Bank.
Reportedly, the transaction is consistent with Strategic Pillar I of ADB's Country Partnership Strategy (CPS) 2019-2023 for Azerbaijan which promotes i) a sustainable and diverse non-oil private sector through strengthening MSMEs and ii) a deeper and more inclusive financial sector; as well as all three Strategic Pillars promoting gender equality by enhancing the business climate and access to credit for female entrepreneurs. The transaction also aligns with ADB's Country Operations Business Plan (COBP) for Azerbaijan for 2021-2023 which calls for promoting the private sector, including SMEs, agriculture, manufacturing, and finance enterprises through credit lines.
