Azerbaijan, Baku, Nov. 23 / Trend /
The European Bank for Reconstruction and Development signed an agreement to participate in DemirBank's joint stock capital four years ago today, the bank said today.
The EBRD became a DemirBank shareholder with a total stake of 25 percent + 1 share in accordance with the agreement four years ago.
The agreement today is one of the most significant events in DemirBank's 20-year history.
EBRD joining DemirBank's shareholders was the result of dynamic development, improving its reliability and credibility among international financial organizations, as well as the successful cooperation between the two banks in loan programs since 1998.
EBRD's joining DemirBank's capital marked a new opportunity for further development. The number of DemirBank shareholders later also increased thanks to the Dutch Development Finance Company (FMO), which owns a 10-percent stake in the bank. These two major international financial organizations are also represented in DemirBank's supervisory board, which ensures their participation in the bank's strategic management and development.
EBRD renders significant support to DemirBank's institutional development. The EBRD has initiated a broad program urging the bank's institutional development. The British company Lloyds TSB has provided the bank with technical and consulting support for institutional development and strengthening various activities within the program.
EBRD also renders support to introduce the SAP automated banking system for DemirBank banking. It is the most advanced automated banking system in the world. The introduction of a full package of SAP for banking, which includes modules such as SAP CRM for banking, SAP ERP, SAP deposit management, SAP loan management, SEM for banking and SAP FSCM treasure and risk management will allow DemirBank to reach a more qualitative level of activity. SAP for banking is implemented at DemirBank in such a volume for the first time in Azerbaijan and the South Caucasus.
EBRD is a key DemirBank partner in loan and trade financing programs.
DemirBank was one of Azerbaijan's first banks. It launched cooperation with EBRD in 1998 and drew financial resources from this influential organization.
Presently, the total volume of EBRD loans available for DemirBank is $50 million.
DemirBank plans to further expand and deepen cooperation with EBRD.
DemirBank has operated since 1989. It strengthened its position and expanded its activities in the country's banking sector after EBRD joined its shareholders.