The Black Sea Trade and Development Bank (BSTDB) is seeking to increase the number of partners in Azerbaijan, the BSTDB cooperation strategy with Azerbaijan in 2015-2018, published on the website of the bank, said.
The bank hopes to find good partners for the development of leasing in Azerbaijan.
BSTDB intends to use the leasing product not only for financing of capital expenditure of small and medium enterprises, but also other companies as an effective financing tool to promote the regional trade.
The bank will seek to increase the number of financial intermediaries and consider the possibility of taking part in the share capital of certain financial institutions and funds.
According to the strategy for 2015-2018, BSTDB will avoid new mortgage financing, giving a priority to the agricultural loans to improve food security and social lending.
“The bank is already working with a number of financial intermediaries in Azerbaijan, delivering trade finance products and medium-term lending to micro, small and medium enterprises,” the strategy said. “These activities will continue to be a priority for the bank.”
The BSTDB trade finance and financial sector strategy was created to develop a network of financial intermediaries. The trade finance, financing of small and medium business and mortgage products are delivered through them.
BSTDB has presented a number of products, including the combined trade finance, medium-term financing to micro, small and medium enterprises and medium-term mortgage products since the beginning of transactions. Moreover, the bank invests in AccessBank’s share capital to create a microfinance institution in Azerbaijan.
In general, according to the strategy, BSTDB will focus on rendering support for the implementation of the program and priorities of the Azerbaijani government, meeting the market needs for the next four years.
The bank will review rendering of services, paying particular attention to the export of goods and services, as well as the development of infrastructure, including energy efficiency.
Moreover, the bank will expand its finance programs in favor of SMEs and trade finance through the intermediaries.
Based on the business plan for 2015-2018, BSTDB plans to sign on average, 2-3 new transactions worth 25-35 million euro every year. There will be from eight to 11 new commitments (signed transactions) within four years. The total amount will be equal to approximately 115 million euro (in the limit of 92-138 million euro).
BSTDB was established in 1996 and began operations in June 1, 1999. The bank’s main office is located in Thessaloniki, Greece. The share of Azerbaijan’s participation in the capital of the bank accounts for 5 percent. Its members are 11 countries. The Bank supports the principles of the development of regional cooperation, and participates in the financing of projects in member countries and in equity.
At present, the bank’s portfolio on Azerbaijan is $166.978 million on 32 signed loan agreements. The total volume of 34 loans approved at the Board of Directors BSTDB reaches $214.348 million.
