EBRD to provide $6 million loan to Armeconombak for on-lending to SME

22.12.2011 16:32
EBRD to provide $6 million loan to Armeconombak for on-lending to SME

YEREVAN, December 22. /ARKA/. Armeconombank and the European Bank for Reconstruction and Development (EBRD) signed on Thursday a five-year loan agreement to finance micro, small and medium businesses in Armenia. The $6 million loan will be disbursed in two equal tranches $3 million each.

"The first tranche will be provided on a priority basis, the second tranche on demand," head of EBRD Office in Yerevan Valeriu Razlog, said at the signing ceremony. Mr. Razlog said the loan is in tune with EBRD's strategy designed for Armenia in the context of providing finance for micro and small companies.

"Along with this we will also provide technical assistance for financing newly established companies and companies operating in the agricultural sector," he said. Mr. Razlog said it is important that the loans will be provided in Armenian drams.

Armeconombank board chairman, Armen Naldjian, said as part of technical assistance EBRD experts will train the bank’s employees the principles of lending to agriculture and newly established businesses. He said the bank’s lending to micro and small-business in 2001 has amounted to $5.5 million. He also said the average size of a loan will be 3 million drams to be provided at 14% interest rate.

Armeconombank in cooperation with the EBRD, which began in 2009, has implemented a set of projects in the amount of $51 million. As of December 21 Armeconombank’s total capital stood at more than 9.14 billion drams, its combined assets at 64.4 billion drams, loan portfolio at 30.5 billion drams, individual deposits at 10.7 billion drams and profits at 504.6 million drams. The Bank has 39 branches in Armenia and Karabakh. More than 78% of its shares are owned by EBRD (25% +1 share) and SIL Group (53.4%). ($1 - 382.43 AMD). -0-


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