ADB organizes regional workshop on Risk Management of SME Lending

Baku, July 4 (AzerTAc). On 1-4 of July, a regional workshop on Risk Management of Small & Medium Enterprise (SME) Lending hosted by Asian Development Bank (ADB) was held in Baku. 37 participants representing banks and development funds of Afghanistan, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Pakistan, Uzbekistan and Tajikistan attended this workshop. SME sector is an important engine for economic growth and a key contributor for employment creation. It plays a critical role in achieving inclusive and sustainable growth. However, growth of this sector is constrained by the lack of access to affordable financing. Despite of efforts by governments, public financial institutions and private sector banks, only around 20 percent of small firms in low-income countries have access to credit. For many developing Asian countries, the underserved and subsequently underdeveloped SME sectors represent missed opportunities for economic growth and poverty reduction. Mr. Olly Norojono, ADB’s country director to Azerbaijan, in his introduction of the workshop, emphasized the importance of the SME sector and further highlighted that sound risk management is crucial for sustainable SME lending. ADB is committed to developing the SME sector by working with private sectors and government agencies to provide financial intermediary loans to banks for on-lending to SMEs. To address working capital constraints for the SMEs, ADB is also actively engaged in trade finance and supply chain finance. Furthermore, ADB supports capacity building for SME finance and this workshop is an integral part of that effort. ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2013, ADB assistance totaled $21.0 billion, including cofinancing of $6.6 billion.