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FINCA, Azerbaijan, Medium SME Facility

Azerbaijan | Financial Institutions

Identification Code:: OP/12/0046
Total Operation Cost:: — USD
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 USD – 01 Mar 2013
: BSTDB Signed Amount – Signed Date

10.000.000 USD – 21 Jun 2013
: Status:
Active
Description and Purpose of the Operation:: The proceeds of the Microcredit/SME Facility (MSMEF) shall be used by the Borrower exclusively for the purpose of financing Sub-Loans eligible in accordance with agreed eligibility criteria.
Countries of Operation:: Azerbaijan (100,00%)
Financial Product:: Loans
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Finca Azerbaijan LLC
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: Microfinance has proven a useful tool to fight poverty helping to increase economic activity among some of the lowest income segments of the population. Microfinance helps entrepreneurs develop and creates new positions of employment. The facility is expected to have modest but favorable economic benefits for the Azerbaijani economy, the most relevant being additional tax revenue gains from increased economic activity. The regional cooperation element is similarly expected to be modest. Other BSTDB countries are important trade partners for Azerbaijan so to the extent SMEs benefiting from the operation engage in export activities, there will be regional cooperation benefits.
Environmental Classification and Impact:: Finca Azerbaijan will be required to continue to adhere to the established internal rules and procedures for environmental and social risk assessment; remain compliant with national environmental legislation in effect; observe BSTDB Negative List of Products and Services; and submit annual environmental performance report.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org