Inecobank attracts credit in $10 million for the development of small and medium-sized enterprises

24.08.2011 12:39
Inecobank attracts credit in $10 million  for the development of small and medium-sized enterprises

YEREVAN, August 24. /ARKA/. Inecobank is attracting credit of 10 million USD for the development of small and medium-sized enterprises (SME) by signing a joint loan agreement with DEG (Deutsche Investitions - und Entwicklungsgesellschaft mbH) and OeEB (Oesterreichische Entwicklungsbank AG), press service of the Bank informed to “ARKA”.

“Small and medium-sized enterprises are an important driving force in the private sector and play a key role in economy development. Due to the new credit the Bank will provide long-term credits to the businesses in this sphere facilitating the expansion of its activities. Small and medium-sized business is a strategic direction in the activities of Inecobank and we highly appreciate the joint contribution of implementation of our mission”, said CEO of Inecobank Avetis Baloyan.

The Bank has a long history of effective cooperation with DEG. Since 2008 DEG is the shareholder of Inecobank.

Baloyan said that this is the first agreement with OeEB which will create a firm basis for further
long-term and effective cooperation.

"We are proud of the promotion of Inecobank that features a unique knowledge of this region and high levels of development. Given the fact that one of the main objectives of the Bank is to finance small and medium-sized businesses, the project aims at providing jobs in this area. The primary goal of DEG is to provide funds for small and medium-sized businesses. SMEs are often too small for commercial banks and too large for microfinance institutions. This funding gap must be filled, said the Head of Asia and Europe Department of DEG Holger Rotenbush.

According to the member of executive board of OeEB Andrea Hagmann, Inecobank is a leading partner in the development of SMEs in Armenia which is the cornerstone of steadily growing economy, and will become an important tool in further development of Armenia.

Inecobank cjsc was registered on February 7, 1996. From December 1997 the Bank started to provide credits for the goods of broad consumption. The shareholders of the Bank are Baloyan Avetis with the share of 37.1%, Safaryan Karen - 33,2%, member of banking the company group KfW, DEG (Deutsche Investitions und Entwicklungesellschaft MBH) - 13.5%. The Bank cooperates with EBRD, USAID, KfW, Black Sea Trade and Development Bank and other international organizations.

DEG is the member of KFW Bankengruppe (banking group KFW). DEG deals with financing and structurization of investments of private companies in the markets of transition economy.

OeEB - Oesterreichische Entwicklungsbank AG (OeEB) operates as an official Austrian Development bank since March 2008 and specializes in long-term financing of projects in private sector implemented in developing countries and ensuring sustainable development. ($1 – 367.22 drams). -0-


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