The Azerbaijan Multi Bank Framework Facility (AMBFF) is part of EBRD's country strategy for Azerbaijan. The country – being largely dependent on income from oil – has seen impressive growth, but has also faced uneven developments of structural reforms.
The ultimate goal of EBRD's strategy is to develop the non oil and gas sector of the economy. This should ensure poverty alleviation and sustainable development throughout the country – not only in Baku but also in rural areas and cities outside the capital. Key to this overall improvement is the financial industry of the country. By providing equity, credit lines, sub-ordinate debt and other types of finance to banks, micro finance institutions, leasing and insurance companies etc. as well as technical assistance EBRD enables financial institutions to cater to different target groups such as micro and small entrepreneurs. Technical assistance is geared to improve capacity, to implement sound banking and good corporate governance practices in partner institutions.
The AMBFF provides long term credit lines to banks and other financial institutions – thus giving access to credit to micro entrepreneurs and SME in Baku and the regions. Partner institutions receive intensive support with regard to the implementation of a micro lending technology. This entails training measures for loan officers and the middle and upper management of the partner institutions, the analysis of loans based on the clients ability to repay, and the implementation of stream lined procedures supported by a powerful loan management system. The AMBFF also supports partner institutions in building up training capacities of their own and furthermore helps to develop new products geared to different target groups, such as agricultural enterprises. Improved methods, such as the use of scoring, aim at increasing the overall efficiency of lending. The AMBFF is part of EBRD Early Transition Countries Initiative which is funded by the ETCF (Early Transition Countries Fund).
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