YEREVAN, April 11. / ARKA /. Areximbank -Gazprombank Group said today it is planning to step up lending to small and medium businesses this year to $10 million. Vigen Barseghyan, a deputy general director of the bank, was quoted in a press release as saying that in the first quarter of this year the bank already channeled $2 million as SME lending and will raise the figure to $10 million by yearned.

According to Barseghyan, the bank considers development of small and medium-sized businesses as a promising direction as the crisis recedes and economic recovery trend increases.

In 2010 Areximbank - Gazprombank Group was one of the top three banks in terms of lending to small and medium companies under a Central Bank refinancing program. The bank’s development strategy calls for increasing lending to SME to $30 million by 2013.

Barseghyan said that lending will be made both from the bank’s own resources and from funds attracted from international financial organizations.

"We have already reached an agreement with the World Bank to initiate the procedure for involving Areximbank - Gazprombank Group in a joint WB- government program for financing SME at preferential terms," he said, noting that a World Bank delegation is due in Yerevan in few days.

According to Barseghyan, the bank provides loans at 12-14% per annum in drams and U.S. dollars repayable in up to 7 years depending on the loan type. According to the press release, the loan portfolio of Areximbank- Gazprombank Group in 2010 grew by 140% from 2009 and the proportion of bad debts dropped from 1,95% to 1,13 %.

Areximbank - Gazprombank Group was founded in 1998 and is fully owned by Russian Gazprombank. -0-