YEREVAN, November 8. /ARKA/. Armenian Araratbank has signed an agreement with three foreign banks today which will provide it with a $12 million syndicated loan for on-lending to small businesses.

The EBRD will contribute US$ 3 million to the total US$ 12 million financing package, with the balance syndicated to Russia’s OJSC Promsvyazbank, VDK Spaarbank nv of Belgium and Lebanon’s Byblos Bank S.A.L. The deal represents Promsvyazbank’s first ever loan to an Armenian bank and the first to Araratbank by VDK Spaarbank and Byblos Bank

"This new project allows Araratbank to access loan funds directly from commercial banks and a diverse group of financial institutions,” said Ashot Osipyan, Araratbank CEO, said today during the loan signing ceremony.

He said Araratbank will on-lend the loan to exporting enterprises and domestic producers at a rate of 9% per annum as part of its social responsibility program.

According to him, this is the second major international program of the bank in 2011. The first loan agreement worth $10 million has been concluded with the South-Eastern European Fund (EFSE).

Lawrence Jorgensen, head of EBRD syndicated loans program, said Araratbank represents a particular interest for EBRD because of its good management.

In terms of assets, Araratbank is one of the largest in Armenia. It has a strong customer base and aims to expand its network of 37 branches. The EBRD owns 25 per cent of the bank’s capital and 74.18% is owned by Barsegh Beglaryan, the owner of Flash fuel importer.

According to the data of ARKA news agency, as of September 30, Araratbank’s total assets stood at about 70 billion drams, its commitments at about 55.3 billion drams, total capital was worth 11.7 billion drams, the share capital stood at 7 2 billion drams, its loan portfolio stood at 35 billion drams, liabilities to clients at 38.7 billion drams. In the first nine months of 2011 it earned 1.7 billion drams in net profit. ($1 - 380.47 AMD).-0-