YEREVAN, June 8. / ARKA /. The European Fund for Southeast Europe (EFSE) has signed today a second loan agreement with Armenian Araratbank to provide it with a $10 million credit for on-lending to micro and small businesses in Armenia, the press service of Araratbank told ARKA. The agreement was signed by EFSE Board chairman, Klaus Glaubitt, and Araratbank CEO Ashot Osipian.

"The first loan issued to Araratbank has served its purpose, and we are pleased to offer another assistance to this bank", said Klaus Glaubitt

Ashot Osipian appreciated highly the level of the bank’s cooperation with EFSE.

"Although our cooperation with a credible partner that has a significant experience in Europe and in former Soviet Union republics is not too long, it can be rated as successful," said Osipian.

He said Araratbank used the first $5 million loan to finance about 110 loan projects in the field of micro and small businesses, offering its customers a financing at more affordable, competitive terms, as well as to diversify its loan portfolio.

Osipian said also the new loan program is a significant contribution to the development of micro and small enterprises in Armenia, contributing to the prosperity of many businesses and implementation of business projects. Araratbank said in après release that its outstanding credit portfolio increased in 2010 by 57%, and by 15% in the first quarter of 2011.

The European Foundation for South-eastern Europe was founded in December 2005 and aims to promote economic development and prosperity in South Eastern Europe. Among its founding shareholders are the European Union, the governments of Germany, Switzerland and Austria, as well as the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), German bank KfW and the Dutch Fund FMO.

Araratbank, previously called Haykap Bank, was founded in 1991 and provides a full range of banking services to corporate, MSME and retail customers. The bank has established a reputation as a small but reliable and dynamically growing financial institution. EBRD holds 25% in Araratbank. The rest is held by Barsegh Beglarian, head of the biggest petrol importing company Flash.

According to ARKA news agency, as of March 31, 2011, Araratbank’s assets totalled 69.9 billion drams, liabilities - 59.1 billion drams, total capital - 10.8 billion drams, chartered capital – 7.1 billion drams, credit investments - 29.2 billion drams, the liabilities to clients - 46 billion drams, while net profit for the first quarter of 2011 was about 510.2 million drams. As of March 31 the bank operated 34 branches. ($ 1-376,56 drama). -0-