YEREVAN, September 13. /ARKA/. The European Fund for Southeast Europe (EFSE) signed a loan agreement with Armenia’s Inecobank for 5 million euros to strengthen the financial grounds of the banks for supporting micro and small-sized businesses, the bank’s press office reported.

The loan agreement was initiated by KFW and was signed with financial support from Germany’s ministry of economic cooperation and development and the European Commission.

According to the report, Inecobank positions itself as a strong and stable player in Armenia’s banking system, able to provide support to micro and small-sized enterprises over the years.

Further advancement of Inecobank on micro and small-sized business financing market is fully harmonized with the strategy developed by the EFSE, said chairperson of EFSE Council Monica Beck. The EFSE has been cooperating with Inecobank since April 2012 and hopes for further cooperation, she said.

Executive director of Inecobank Avetis Baloyan said the loan agreement will give its bank new opportunities for expanding lending to micro and small businesses and facilitate sustainable development of Armenia’s private sector.

The European Fund for Southeast Europe (EFSE) aims at promoting economic development and prosperity in countries like Armenia, Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, and Ukraine. In particular, the EFSE is providing long-term funding to micro and small-sized businesses and households: the funds are allocated through local partner organizations.

Inecobank was established in 1996. Its key aim is to bolster development of the private sector through partnership with micro, small and medium-size companies and individual clients.

The bank’s assets totaled $258 million as of the end of June, 2013. Its loan portfolio is $204 million. Inecobank is cooperating with more than 25 international financial organizations, particularly with IFC, German DEG, EBRD, Asian Development Bank.–0--