BSTDB and Bank Respublika Partner to Boost SME Financing in Azerbaijan

BSTDB and Bank Respublika Partner to Boost SME Financing in Azerbaijan

Press Release | 12-Sep-2025

AZN 25 million facility to support local currency lending

The Black Sea Trade and Development Bank (BSTDB) is expanding its support for Azerbaijan's private sector through a new AZN 25 million loan facility to Bank Respublika. The financing will enable the Bank to increase lending to small and medium-sized enterprises (SMEs), with a focus on businesses in non-oil sectors, in line with BSTDB's Country Strategy and the BSEC Economic Agenda.

The fresh funding is expected to stimulate job creation, boost incomes, improve infrastructure, and reduce poverty, supporting Azerbaijan's national priorities for diversification and sustainable economic growth.

Since the start of their cooperation in 2006, BSTDB and Bank Respublika have jointly financed multiple projects that expanded access to credit for Azerbaijani businesses. The new facility builds on this experience, reinforcing Bank Respublika's role as a reliable partner in delivering SME financing and supporting the country's development priorities.

"Local currency lending is one of the most effective ways to empower SMEs, enabling them to grow sustainably and confidently without the burden of foreign exchange risk. This partnership with Bank Respublika is not only a renewed chapter in our cooperation but also a strategic step towards strengthening Azerbaijan's non-oil economy. Together, we are creating greater opportunities for entrepreneurs, supporting innovation, and contributing to long-term economic resilience. BSTDB is proud to stand alongside Bank Respublika in advancing sustainable growth and prosperity across the country,"
said Dr. Serhat Köksal, President of BSTDB.

"The funds will enable Bank Respublika to expand the financial opportunities of small and medium-sized enterprises (SMEs), foster their sustainable growth, strengthen the non-oil sector, create new jobs, and support innovative business initiatives. Thanks to Bank Respublika's extensive branch network, the attracted resources will create favorable conditions for supporting entrepreneurs across all regions of Azerbaijan. We sincerely thank our partners from BSTDB for their cooperation and are confident that the attracted resources will allow us to strengthen credit support for the real sector, especially for SMEs, thereby contributing to the overall economic development of the country." noted Tariyel Ismayilov, Chairman of the Management Board of Bank Respublika.

The new agreement reflects BSTDB's continued commitment to supporting private sector development across the Black Sea region through targeted partnerships with national financial institutions.

Established in 1992 and headquartered in Baku, Bank Respublika is the fifth largest commercial bank in Azerbaijan. The bank, offering a full range of banking services and products, operates through a network of 35 branches in Azerbaijan and is focused on servicing SMEs and retail customers.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. For information on BSTDB, visit https://www.bstdb.org.

Contact: Haroula Christodoulou

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