BAKU: The Asian Development Bank (ADB) has unveiled a suite of new financial products aimed at enhancing financial inclusion and supporting small and medium-sized enterprises, ADB Country Director for Azerbaijan Sunniya Durrani-Jamal announced at a conference on “Innovative Solutions for Sustainable Microfinance” in Baku.

According to Trend News Agency, Durrani-Jamal highlighted that the ADB’s strategy is centered on providing financial access to underserved and vulnerable communities. This approach is seen as vital for job creation, income enhancement, and poverty reduction. She noted that since 2010, the ADB has implemented a significant microfinance program, extending approximately $2.3 billion in loan support and attracting $1.2 billion in co-financing. The program has successfully provided microloans to over 10 million borrowers, with women constituting 98 percent of the recipients.

Durrani-Jamal explained that the ADB also offers consultations to improve regulatory practices, aiming to foster responsi
ble market growth and enhance financial services. This includes the development of new services such as payment solutions, savings products, microinsurance, and innovative delivery mechanisms like branchless and mobile banking. The ADB has extended such advisory services to the government of Azerbaijan and its Central Bank.

Furthermore, the ADB provides trade and supply chain financing and collaborates directly with microfinance institutions through direct loans, risk-sharing agreements, and guarantees to facilitate their expansion. In its role as a climate bank for Asia and the Pacific, the ADB has also developed financial products focused on disaster risk financing, addressing the financial challenges faced by microfinance institutions during disasters and enhancing their capacity to support community recovery efforts.