Areximbank – Gazprombank Group To Extend Loans To Small And Medium Companies In Armenia Under WB Program

05.09.2011 20:59
Areximbank – Gazprombank Group To Extend Loans To Small And Medium Companies In Armenia Under WB Program

YEREVAN, September 5. /ARKA/. Areximbank – Gazprombank Group CJSC will take part in the World Bank’s program on crediting small and mid-scale businesses in Armenia, the bank’s press office reported on Friday.

The bank signed an appropriate agreement with the Central Bank of Armenia on August 30, 2011.
Areximbank – Gazprombank Group views development of small and mid-size businesses among the most promising focuses of its activity, as the press office says.

According to the press release, the bank recently enlarged lending to small and medium companies under the central bank’s refinancing program actively cooperating with international financial organizations, including also Germany’s KfW Bank. Areximbank – Gazprombank Group found itself among three largest creditors of small and mid-scale businesses in Armenia-s banking system in 2010.

The bank took an active part in mortgage lending under KfW Bank’s program. It also participated in the IFAD program on development of rural areas.

Areximbank – Gazprombank Group built up its loan portfolio by 30% in Jan-June 2011 to AMD 63 billion.

The loan portfolio constitutes 78% of the bank’s assets.

The bank’s assets grew 20% over the first six month of this year reaching AMD 80.5 billion by early July.

The World Bank’s $50-million program for development of small and medium entrepreneurship was approved in late February 2009.

The loan was extended for 26.5 years with a five-year grace period on the conditions of the International Bank for Reconstruction and Development.

The program is a key part of the government’s anti-crisis program. The program participants extend loans to small and mid-size companies. After that the information about the loan is checked in accordance with the World Bank’s requirements and then refinanced.

Areximbank-Gazprombank Group (former Areximbank, renamed on June 12, 2009) was established in August 1998 for supporting entrepreneurship and serving financial flows between Russia and Armenia.
Areximbank – Gazprombank Group is a member of VISA International and MasterCard International payment systems.

In November 2007, Russian Gazprombank acquired bought 80% of Areximbank’s shares.

In July 2008, Areximbank issued additional bonds, which were bough by Gazprombank as well.

As a result, Gazprombank’s share in Areximbank reached 94.15%.

In September 2008, Gazprombank bought the remaining 5.85% from Raiffeisenbank and is now the sole owner of the bank. –0—


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