IDB-ADFIMI WORKSHOP on “FINANCING SMEs for EXPORT PROMOTION for the BENEFIT of CENTRAL ASIAN REPUBLICS” was held at the DELFIN HOTEL, from 2 to 3 JULY 2007, in BAKU, AZERBAIJAN
The workshop addressed 6 Central Asian Republics (CARs) namely Azerbaijan, Kazakhstan, Kyrgyztan, Tadjikistan, Turkmenistan and Uzbekistan. It was hosted by ADFIMI members in Azerbaijan (Unibank, Azerigazbank, Bank Respublika, Atabank and Rabitabank). TIKA, Turkish International Development and Cooperation Agency co-sponsored the event by providing travel expenses of overseas participants.
ICD, Islamic Corporation for the Development of Private Sector, Bank Keshavarzi of Iran, Turkish Eximbank and Halkbank of Turkey and Unibank of Azerbaijan each contributed with a resource person.
In the opening session there were four speakers. The first speaker was Br. Etibar Babaşlı, Vice Chairman of the Board of Atabank who welcomed the participants to Baku and highlighted the importance of the seminar. He was followed by Br. Samir Balayev, Vice Chairman of Unibank and head of the Working Group. The third speaker in this session, was Mr.Nuri Birtek, ADFIMI Secretary General, who summarized the events leading to the workshop and thanked IDB/TCO and everybody involved in its preparation. The final speaker in the opening session was Dr. Ali A Soliman, CEO and General Manager of ICD, who introduced and described the activities of ICD.
The workshop then proceeded in accordance with the Program.
Br Nuri Birtek was the first speaker in the first session, who introduced ADFIMI to the audience. Br. Latif Abdullayev then provided detailed information on the SME sector in Azerbaijan. In the second session Dr. Ali A. Soliman spoke on the historical background of ICD and provided detailed information on the financing of SMEs for export purposes. Dr. Abbas Arabmazar continued with his presentation “SME Sector in Iran” and provided information on Bank Keshavarzi’s experience with exporting SMEs in Iran. The fifth speaker Br. Burak Balcı of Halkbank, Turkey has elaborated on the SME structures and developments in Turkey, with special reference to Halkbank’s experiences in this respect. The last speaker was Sr. Gülçin Çöklü who gave very detailed information on the experience of Turkish Eximbank in the promotion of exports by SMEs with special reference to IDB’s line of finance.
THE ROUNDTABLE PROPOSALS
The workshop continued with a lively discussion on 3 July 2007. It was co-chaired by Br.Nuri Birtek and Br. Samir Balayev.
In view of the objective of the workshop and of the presentations made, the lecturers and the participants took the floor and expressed their views and opinions, and posed questions. Banks present as speakers offered to share their experiences with the DFIs in the CARs in as much as would be required by these institutions.
After a lengthy discussion a unanimous agreement was reached on the following proposals:
1) A study could be made to establish the current status of SME sector in the CARs. This study would include the structure, legal set up, sectoral distribution, share in economy, share in employment of the SMEs in each country, the major actors their strengths, weaknesses and opportunities.
2) The representatives of Banks from Uzbekistan and Kyrgyz Republic proposed similar national workshops to be held in their countries on the subject of Islamic modes of finance (which would include practical aspects).
3) Being a major impediment, it was proposed to establish a database where major products of SMEs would be listed. This database would facilitate networking.
4) In countries where oil was the mayor exporting sector, it was proposed that SME finance for exports in non-oil sector should be promoted.
5) Tendency in Azerbaijan towards financing existing businesses for expansion rather than newly starting SMEs was an issue and Turkish and Iranian institutions agreed to share their experiences with the Azerbaijani banks in this respect.
6) As for IDB/ICD finance, DFIs were required to apply directly to these institutions.
7) NDFIs representatives were told that although they were invited to become ADFIMI members, it was not necessary, as this workshop was a testimony, to be a member of ADFIMI to attend seminars or workshops organized by ADFIMI.
8) The three banks represented by the resource persons (Turkish Eximbank, Bank Keshavarzi, Halkbank) offered their training facilities for the benefit of DFIs from CARs. Turkish Eximbank proposed a one-week in-service-training in Ankara. It was up to the institutions from CARs to request for such training and ADFIMI would seek for necessary funds towards the implementation of the programmes.
9) It was also unanimously agreed to propose that SMEs were in need of training on financial matters probably more than the banks and should be invited to participate in the seminars/workshops organized by ADFIMI/IDB.
The seminar came to close on 3 July at 12:30 hrs, the participants took their certificates from the representatives of Bank Keshavarzi, Halkbank, Turkish Eximbank, IDB/ICD and ADFIMI.
In the afternoon there was a city tour inside of the old Baku, and dinner was hosted by the ADFIMI’s Azerbaijani members.
