YEREVAN, October 29. / ARKA /. Armenian Araratbank will sell 10 percent if its shares to Belgian Incofin Investment Management. An agreement to that effect was signed today in Yerevan by Incofin IM managing director for investments, Geert Peterman, chairman of Araratbank board  Barsegh Beglaryan and its CEO Ashot Osipyan.

At the time of signing the agreement 74.18% in the bank were owned by Barsegh Beglaryan, the owner of the largest local oil trader Flash and 25% were owned by the European Bank for Reconstruction and Development (EBRD).

"The 10 percent stake to be sold to the Belgian company is estimated at about $5-$6 million,’ Ashot Osipyan said adding that the share of Barsegh Beglaryan will reduce. He also said a representative of Incofin IM will be given a seat on the bank’s board.

According to him, Incofin IM has extensive experience in the field of microfinance and agricultural lending. "We believe that through cooperation we will be able to develop new tools in these areas,"  Osipyan said. Geert Peterman said the company is interested in investing in the financial system of Armenia.

"We are not looking for purely financial benefits from our projects, trying to contribute to the development of the country. That is why, we needed an experienced company in Armenia, which is able to communicate with clients, with whom we want to work, and they are SME entrepreneurs and farmers,” he said.

Araratbank and Incofin Investment Management started cooperating in 2011 through a $3 million worth loan project. Incofin IM manages investment funds that invest in microfinance institutions (MFIs) in over 40 countries.

Araratbank, the successor of Haykap bank, was established in 1991. Its capital as of September 30, 2012 amounted to 14.9 billion drams, liabilities to 84 billion drams. Its assets at the end of third quarter 2012 stood at  98.9 billion drams, the credit portfolio at 48.7 billion drams, and individual term deposits at 17.3 billion drams. The bank runs 43 branches in the capital and regions ($ 1 - 405.3 drams). -0-