annual repOrt - Turan Bank

34
Enhancement of the relations with international
financial institutions is one of the priorities of
“TuranBank” and active measures were taken on in
this field in 2007.
The year 2007 is considered to be a successful
years from the point of view of enhancement and
establishment of the international cooperation. The
successful activity carried out during the reporting year
may be divided into 2 groups. The first group of activities
includes the enhancement of the existing relations and
the second group includes the establishment of new
relations.
In the reporting year the bank participated in
“North-East” Project provided by International Fund
For Agricultural Development (IFAD) and covering 4
regions (Absheron, Khizi, Davachi and Siyazan). The
project, having a total budget of the is 13 million US
Dollars and covering a five-year period, is aimed at the
development of small-scale and medium enterprises
acting in the field of production and processing of
agricultural products.
The first credit agreement between IFAD and
TuranBank was concluded in 2004 within the framework
of “Development of Mountainous and Highlands Areas”
project. The mentioned project, intended for 5 years
and covering 7 mountainous and highland regions, is
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InternatIOnal COOperatIOn
aimed at the development of SMEs. Within this project
TuranBank acted as an agent bank, being the sole
partner of IFAD.
The long-term cooperation and partnership
relations with IFAD, provides great opportunities for
“TuranBank” to participate in new “Development of
Western Regions” project in 2008.
TuranBank’s next achievement was the agreement
with International Development Association (IDA) which
was amounted to 15 mln US Dollars for 7 years aimed
to finance SMEs operating in agricultural sector.
TuranBank concluded the third long-term credit
agreement with the Islamic Corporation for the
Development of the Private Sector (ICD – a subsidiary
of Islamic Development Bank). Conclusion of this
credit agreement between ICD and TuranBank was a
significant step in improving the competetiveness of
the bankin the financial sector of Azerbaijan in the field
of crediting of SMEs under Islamic banking principles.
The credit agreement with ICD, amounting to 1 million
US Dollars, is intended for 6 years, the first year of
which is preferencial, and is aimed at crediting of
SMEs.
Since it is based on favourable and productive
principles, the first credit agreement with ICD will
provide a ground for participation of TuranBank in