Baku: The European Bank for Reconstruction and Development (EBRD) has announced a loan of up to US$20 million to AccessBank, a prominent Azerbaijani bank that specializes in micro, small, and medium-sized enterprises (MSMEs). This strategic move aims to empower youth-owned and youth-led businesses across Azerbaijan.

According to Azerbaijan State News Agency, the funding from EBRD will be directed towards MSMEs managed by young entrepreneurs, enabling them to secure essential capital for growth, innovation, and contribution to the country’s economic progress. This initiative represents the first Youth in Business loan in Azerbaijan and is supported by the European Union (EU) through the European Fund for Sustainable Development Plus (EFSD+) Financial Inclusion in the Neighbourhood programme, which provides first-loss risk cover.

The loan agreement is set to expand AccessBank’s reach to a crucial market segment while showcasing the potential investment opportunities in youth-led enterprises within Azerbaijan. MSMEs are vital to robust economies, and supporting young entrepreneurship aligns with Azerbaijan’s goals to diversify its economy and strengthen its private sector.

This initiative marks a significant milestone for the EBRD’s Youth in Business programme, which is already operational in regions including Central Asia, Egypt, Morocco, Trkiye, and the Western Balkans. The programme is designed to facilitate access to both financial and non-financial services for MSMEs managed by young entrepreneurs.

The EBRD stands as a leading institutional investor in Azerbaijan, with investments totaling £3.7 billion spread across 200 projects. The Bank’s strategy in Azerbaijan emphasizes supporting the non-oil sector, local financial institutions, and enhancing green economy investments.