Baku, Azerbaijan, Dec. 24
By Azad Hasanli - Trend:
International Finance Corporation (IFC) approved allocation of a $3 million loan for Azerbaijani leasing company MCB Leasing to expand the program of lending to small and medium-sized enterprises (SME).
The IFC said in a message posted on its website that the transaction is its first loan provided to Azerbaijan's leasing sector directly.
Previously, the IFC allocated $5 million to Uni Leasing and $1 million to AG Leasing through these companies' parent banks.
The corporation said the loan contributes to the economic growth by means of expanding the access to funding of small and medium-sized enterprises.
According to the IFC message the penetration level of lending in Azerbaijan is relatively low and an increased access to loans is needed to support the small and medium-sized businesses, which constitute the most important part of the non-oil economy of Azerbaijan.
Currently, the parties are expected to sign a loan agreement.
MCB Leasing was established in 2010 by Pakistan's MCB Bank Limited.
The company ranks eighth in terms of its size among the leasing companies in Azerbaijan. Its share in the domestic market was 3.2 percent as of December 2013.
Azerbaijan started cooperating with IFC in 1995. The IFC portfolio in Azerbaijan totals $414 million, which were allocated for implementation of 73 projects.
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