ADB & Bank Respublika's $20M Boost for Azerbaijani Agriculture

The Asian Development Bank (ADB) and Bank Respublika Open Joint Stock Company have signed a loan arrangement for $20 million (34 million Azerbaijani manats) to help women borrowers and micro, small, and medium-sized companies (MSMEs) in Azerbaijan's agricultural sector.

The funding will be used to increase domestic food production, reduce import reliance, and solve food security issues. Candice McDeigan, ADB's Azerbaijan nation Director, emphasized the importance of MSMEs in the nation, noting that they employ more than two-thirds of the workforce, with agriculture accounting for about 40% of registered women-owned enterprises.

The collaboration with Bank Respublika, a dependable ADB partner, is in line with ADB's aims of boosting food security and promoting agriculture. Despite their importance, many MSMEs in Azerbaijan struggle to get financial resources, making bank loans difficult to obtain.

To fund the loan, ADB will issue a Manat-denominated bond and collaborate with Bank Respublika to promote gender equality, provide customised financial services for female clients, and train loan agents on addressing women's business problems.

Bank Respublika, the country's largest privately held bank, has improved its microlending operations with digital tablets, allowing for real-time data transfer and loan application review. The cooperation will also focus on boosting capital markets in Azerbaijan utilizing local currency, so contributing to the country's economic progress.