YEREVAN, October 8. / ARKA /. Armenian Inecobank said today it has signed a five-year $10 million loan agreement with the Austrian Bank of Development (OeEB) for financing small and medium enterprises in Armenia.

"I am glad to note that the joint cooperation between Inecobank and OeEB has been supported by another loan agreement, which will expand Inecobank’s capacity for long-term financing of small and medium-sized enterprises," said the executive director of the bank Avetis Baloyan.

Inecobank signed the first $10 million worth loan agreement with OeEB in 2011 for the development of small and medium-sized businesses in Armenia.

Andrea Hagman, a member of OeEB Board, was quoted as saying in a press release that the loan will help boost Armenia’s economic development.

Through effective collaboration between Inecobank and reputable international organizations and due to its customer-focused strategy the bank’s lending to SME in the first six months of this year increased by 12%, it said. According to ARKA data, Inecobank is the second bank by size of lending to SME among 21 local commercial banks.

OeEB was founded in March 2008 as the official development bank of the Republic of Austria. With a public mandate its works for better living conditions in developing countries.

Inecobank, founded in 1996, seeks to promote development of private sector through partnerships with micro, small and medium enterprises and private clients. Inecobank cooperates with more than 25 international financial institutions, including IFC, German DEG, EBRD, the Asian Development Bank.

In late June 2013 the bank's assets stood at 105.3 billion drams, liabilities at 84.8 billion drams , the capital at 20.4 billion drams. Its outstanding credit portfolio stood at 78.7 billion drams. ($1 - 405.59 drams). -0-