Local currency loan opens new path for Azerbaijan’s businesses

For many small businesses, access to finance is only part of the challenge. Borrowing in foreign currency can also expose companies to exchange rate risk, making investment more uncertain and long-term planning harder.

The OPEC Fund’s new US$20 million-equivalent local currency loan with Bank Respublika is designed to help address that challenge. The financing will be on-lent to local MSMEs, supporting entrepreneurship, job creation and private sector growth.

The transaction also marks an important step in the OPEC Fund’s evolving financial toolkit. By providing financing in local currency, the institution can better match the needs of partners and borrowers, while supporting confidence in domestic markets.

Bank Respublika, founded in 1992, is one of Azerbaijan’s leading private commercial banks. It was the country’s fifth largest bank by assets in 2025 and serves MSMEs and retail clients through a growing branch network.

The agreement was signed on the sidelines of the fifth OPEC Fund Development Forum in Vienna in late June.

The OPEC Fund’s partnership with Azerbaijan dates back to the early 2000s. Since then, it has approved more than US$250 million in financing across banking, energy and infrastructure, supporting sustainable development and private sector growth in the country.