- The European Investment Bank (EIB Global) signs a €2 million top-up to its existing €10 million loan to Bank Respublika.
- The financing will expand access to local currency funding for micro, small and medium-sized enterprises
- The operation coincides with Bank Respublika’s pilot use of a new local currency hedging mechanism introduced by the Central Bank of Azerbaijan.
The European Investment Bank’s international partnerships and development arm, EIB Global, has signed a €2 million top-up to the outstanding €10 million loan to Bank Respublika, reinforcing the European Union’s commitment to expanding access to finance for micro, small and medium-sized enterprises in Azerbaijan. The additional financing builds on the success of the original operation signed in 2024.
The new funding will enable Bank Respublika to further scale up lending to Azerbaijani businesses, particularly by increasing the availability of loans in Azerbaijani manat, helping local enterprises access more stable and affordable financing.
MSMEs play a central role in Azerbaijan’s economic diversification and employment. Strengthening their access to finance is therefore essential to supporting private sector development, entrepreneurship and sustainable economic growth
The top-up comes at a strategic moment as Bank Respublika prepares to pilot the innovative local currency hedging mechanism introduced by the Central Bank of Azerbaijan. This facility will allow the bank to hedge foreign exchange exposures more effectively, helping create a more stable environment for MSME lending in the country. By enabling the expansion of local currency lending while managing risks efficiently, the operation supports a practical and timely application of this new financial instrument.
This continued cooperation reflects the strong partnership between EIB Global and Bank Respublika, one of Azerbaijan’s leading financial institutions and a committed supporter of MSMEs
EIB Vice-President Karl Nehammer, who oversees the Bank’s operations in the Eastern Partnership region, said:
“Micro, small and medium-sized enterprises are at the heart of Azerbaijan’s economy. Through the successful partnership with Bank Respublika, EIB Global is helping local businesses access the funding they need to grow, create jobs and innovate. Providing financing in local currency is especially important, as it supports the resilience of businesses and strengthens the country’s private sector.”
The Ambassador of the European Union to the Republic of Azerbaijan, Marijana KUJUNDŽIĆ said“Developing deeper and more resilient financial markets is key to supporting Azerbaijan’s economic transformation. The Central Bank’s new local currency hedging mechanism is an important innovation that can help banks better manage exchange rate risks and expand lending in local currency. Initiatives like this, combined with partnerships with institutions such as the EIB, contribute to a stronger environment for private sector growth.”
Chairman of the Management Board of Bank Respublika, Tariyel Ismayilov, noted:
“We highly value the trust of EIB Global, which considers Bank Respublika one of its key partners in Azerbaijan. I would also like to highlight the Central Bank’s modern, flexible and proactive approach to market needs. The introduction of the currency risk hedging mechanism expands opportunities for international financing and strengthens lending to businesses in national currency.”
Background information
EIB Group
The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.
The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium-sized businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilises private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.
In 2023, the EIF together with six Member States (France, Germany, Italy, Spain, Belgium and the Netherlands) launched the European Tech Champions Initiative, a fund-of-funds to scale up innovative startups. As of March 2026, this initiative has already enabled the creation of 14 European venture capital mega-funds and scaled up 40 companies, including 11 unicorns (with more than €1 billion in capital).
EIB Global
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international win-win partnerships and development finance, and a key partner of Team Europe and the Global Gateway strategy. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world.
Photos of the EIB Group's spokespeople and headquarters, logo files and video B-roll for media use are available here.
About Bank Respublika
Bank Respublika was founded in 1992 and is among the five leading banks in Azerbaijan. The bank operates one of the most extensive service networks in the country, with more than 40 service points covering all regions of Azerbaijan, providing a wide range of financial services to individuals, entrepreneurs and corporate clients. One of its shareholders is Sparkassen International Development Trust, the international development arm of Germany’s largest financial group, Sparkassen-Finanzgruppe.Bank Respublika also holds one of the highest international credit ratings in Azerbaijan’s banking sector, with a Ba3 rating and Stable outlook from Moody’s.