Bank Respublika and EIB Global sign a credit agreement using the Central Bank’s hedging mechanism

Bank Respublika and EIB Global conclude a new loan agreement to support entrepreneurship in Azerbaijan

Bank Respublika and EIB Global, the arm of the European Investment Bank (EIB) financing projects outside the European Union, have signed a new credit agreement aimed at supporting micro, small and medium-sized enterprises (MSMEs) in Azerbaijan. 

Through Bank Respublika’s extensive regional network, the funds will help improve access to financing for entrepreneurs operating across the country. A key feature of the agreement is that the currency risk will be managed through a hedging mechanism provided by the Central Bank of Azerbaijan.

EIB Vice-President Karl Nehammer, who oversees the Bank’s operations in the Eastern Partnership region, said:

“Micro, small and medium-sized enterprises are at the heart of Azerbaijan’s economy. Through the successful partnership with Bank Respublika, the EIB is helping local businesses access the funding they need to grow, create jobs and innovate. Providing financing in local currency is especially important, as it supports the resilience of businesses and strengthens the country’s private sector.”

EU Ambassador to Azerbaijan Marijana Kujundžić said:

“Developing deeper and more resilient financial markets is key to supporting Azerbaijan’s economic transformation. The Central Bank’s new local currency hedging mechanism is an important innovation that can help banks better manage exchange rate risks and expand lending in local currency. Initiatives like this, combined with partnerships with institutions such as the EIB, contribute to a stronger environment for private sector growth.” 

Chairman of the Management Board of Bank Respublika, Tariyel Ismayilov, noted:
“We highly value the trust of EIB Global, which considers Bank Respublika one of its key partners in Azerbaijan. I would also like to highlight the Central Bank’s modern, flexible and proactive approach to market needs. The introduction of the currency risk hedging mechanism expands opportunities for international financing and strengthens lending to businesses in local currency.”

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