The Micro Finance Bank of Azerbaijan (MFBA), a commercial bank that was established in 2002 to provide financial services to privately-owned micro and small enterprises (MSEs) in Azerbaijan, plans to appear in the domestic mortgage lending market. The bank does not currently participate in the state mortgage lending program, but is taking steps to launch its own mortgage program. AMFB board member Anar Hasanov said that the bank has met all the preconditions for financing mortgage operations as an independent commercial entity. The issue is currently under consideration by MFBA shareholders. No program conditions have yet been outlined.
The bank expects to endorse the issue with its shareholders in 2008 or 2009, according to Mr. Hasanov. MFBA currently has six shareholders: KfW, a German government-owned development bank, the European Bank of Reconstruction and Development (EBRD), a multilateral development bank which is the largest single investor in the region from central Europe to central Asia, the International Finance Corporation (IFC), a member of the World Bank Group which supports private sector growth in developing countries, the Black Sea Trade and Development Bank, a regional multilateral financial institution, AccessHolding, a commercial microfinance holding company, and LFS Financial Systems GmbH, a consulting and management company specialized in financing MSEs in developing countries. KfW has a 25 percent stake, EBRD, 20 percent stake, IFC, 20 percent, BSTDB, 20 percent, AccessHolding, 10 percent, and LFS, 5 percent.
MFBA has reported significant growth over the past few years. In 2007, the bank’s assets rose 100 percent and, as of October 1, totaled USD 120 million. The same year, MFBA’s credit portfolio grew 100 percent as well. “Last December our credit portfolio was $47 million and now it exceeds $100 million,” Mr. Hasanov said. In its five years in operation, MFBA has served over 40,000 clients and dispersed 80,000 loans worth USD 225 million. Approximately 30 percent of the Azerbaijan microfinance market is controlled by MFBA.
Additional Resources:
abc.az: “Since next year Azerbaijan Micro Finance Bank to begin mortgage crediting.”
abc.az: “Azerbaijan Micro Finance Bank’s assets reached $120 million”
Micro Finance Bank of Azerbaijan (MFBA)
European Bank of Reconstruction and Development (EBRD)
EBRD: About Us
International Finance Corporation
Black Sea Trade and Development Bank
Similar Posts:
- MICROCAPITAL BRIEF: Uzpromstroybank (UzPSB) Borrowing $15m from EBRD for SMEs in Uzbekistan
- MICROCAPITAL BRIEF: EBRD Loans $4.4m to KEP Trust of Kosovo with Focus on Rural, Women-led MSMEs
- MICROCAPITAL BRIEF: EBRD Purchases 5% Equity Stake in ProCredit from IFC, Increasing Exposure to SMEs in Europe, Ecuador
- MICROCAPITAL BRIEF: EBRD Loans $21m to BMCI of Morocco as Part of Women in Business (WiB) Program
- MICROCAPITAL BRIEF: EBRD Loaning $5m to ING Finansal Kiralama for Leasing for Energy Efficiency, Renewables in Turkiye
