Baku, Azerbaijan, June 21, 2011
—IFC, a member of the World Bank Group, is providing Turan Bank with a $7 million loan to increase lending to micro and small entrepreneurs in Azerbaijan. The loan will help the bank to diversify services and expand operations, especially in underserved rural areas.
IFC has supported Turan Bank since 2009, when the bank participated in IFC’s Corporate Governance Advisory Services Project pilot program, from which it is successfully graduating today. The bank also participated in IFC’s Financial Markets Crisis Management Project. As a result of these projects, Turan Bank improved its corporate governance systems and strengthened its risk management capacity.
"IFC’s support over the past two years has been extremely beneficial in improving our internal risk management systems and strengthening corporate governance practices,” said Fuad Musayev, Turan Bank’s Chairman of the Supervisory Board. "This cooperation has now culminated in the signing of a credit line which we will use to extend the bank’s lending to small and medium-sized businesses across the country.”
Ed Strawderman, IFC Senior Manager, said, “Turan Bank’s partnership with IFC to date and the bank’s commitment to strengthening its corporate governance and risk management practices are key factors that led IFC to provide this loan. This financing will help Turan Bank to increase outreach to micro and small businesses, which is part of IFC’s financial markets strategy in Azerbaijan.”
Azerbaijan joined IFC in 1995. As of January 2011, IFC has committed $334 million of its own funds and arranged nearly $104 million in syndications in Azerbaijan. IFC continues to support diversification of the country’s economic base and sustainable growth in the non-oil economy.
IFC’s Corporate Governance Advisory Services Project and Financial Markets Crisis Management Project in Azerbaijan are supported with funds from the Swiss State Secretariat for Economic Affairs, SECO.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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