The Asian Development Bank (ADB) and Bank Respublika Open Joint Stock Company have signed a $40 million loan agreement to expand access to financing for micro, small, and medium-sized enterprises (MSMEs) and agricultural borrowers in regions outside Azerbaijan’s capital, Baku, Qazinform News Agency cites the press service of ADB.
Under the agreement, at least 20% of the loan proceeds will be allocated to women-owned MSMEs, while at least 50% will support borrowers engaged in agricultural production, processing, and trade. The funding is expected to facilitate the adoption of modern drip irrigation systems and encourage the cultivation of crops and fruits suited to varying weather conditions.
The initiative aims to promote business growth, create jobs, increase incomes, strengthen resilience to natural hazards, and contribute to the diversification of Azerbaijan’s economy. “This financing aligns well with ADB ’s country partnership strategy for Azerbaijan, 2025–2029, by promoting private sector-led growth, strengthening food security, improving resilience, and expanding access to finance for women-led businesses in areas outside the capital,” said Sunniya Durrani-Jamal, ADB country director for Azerbaijan.
She added that the project builds on the bank’s existing cooperation with Bank Respublika and expressed ADB ’s commitment to deepening the partnership to achieve these objectives. Established in 1992, Bank Respublika is Azerbaijan’s fifth-largest bank by assets, holding a 4.4% market share.
It serves retail, MSME, and corporate clients through a network of 40 branches, 24 of which are located outside Baku. Earlier, Qazinform reported Kazakhstan and Azerbaijan signed an agreement on the Middle Corridor development.