An EBRD credit line to Unibank in Azerbaijan will double in size following a $1.5 million contribution from the International Co-operation and Development Fund of Taipei China.

The extra funds will enable Unibank to extend much-needed credit to qualifying small and medium-sized enterprises (SMEs) in Azerbaijan. Rogers LeBaron of the EBRD Financial Institutions Team said such access to finance of small businesses, an essential engine for the diversified and sustainable economic growth, is a key element of the EBRD’s strategy for Azerbaijan.

The funding is being provided by the Taipei China fund through its Financial Intermediary Investment Special Fund. That special fund is managed by the EBRD and, among other things, has promotion of SMEs as a key objective.

The loan will expand Unibank’s medium-term lending capacity to SMEs. It is part of an overall $20million facility through which the EBRD is providing credit for SME lending to banks in Azerbaijan. As a participant in the framework, Unibank also benefits from an EBRD managed credit training and assistance funded by the Europe Union’s TACIS programme.

Faig Huseynov, Chairman of the Executive Board at Unibank, said SME financing is one of the strategic aims for the bank. Increasing the credit line by $1.5 million allows Unibank the opportunity to consider a greater number of projects in the private sector. It is also worth noting that these funds are designed for long-term financing-up-to four years - which is undoubtedly an advantage and stimulus for industrial development in the country.

Unibank is also a participant in the EBRD’s Trade Facilitation Programme, started in 1999 to support trade to, from and within the EBRD’s 27 countries of operations. The Bank guarantees payment obligations of local issuing banks to their western confirming counterparts in respect of trade-finance instruments. The fast-growing programme recently topped the 1 billion euros mark for volume financed, Under this programme the EBRD also extends short-term loans to select banks in its countries of operations to fund trade-related advances to local companies.

The EBRD has a portfolio in Azerbaijan worth 304 million euros in sectors as diverse as banking, property, power, water, transport, SMSs and natural resources.