UNDER GUARANTEE OF KFW BANK, GERMAN COMMERCBANK TO PROVIDE CREDIT
LINES TO THREE ARMENIAN BANKS

YEREVAN, JULY 21, NOYAN TAPAN. Within the framework of the Credit
Guarantees Fund Program, the German Commercbank will provide credit
lines to three Armenian banks – ACBA, Anelik Bank and Armeconombank
under the guarantee of the KFW Bank. The indicated banks will receive
4.5 mln USD, 2.5 mln USD and 2 mln USD repectively by late
August. According to the Armenian representative of the KWF Bank
Karapet Gevorgian, these funds will be used to develop small and
medium business. The Credit Guarantees Fund Program aims at giving
guarantees to Armenian banks in order to help them get loans from
international financial markets. The three above mentioned Armenian
banks were chosen as the program participants in late 2004. The choice
was made based on these banks’ financial indices, level of management
and quality of the credit portfolio. According to K. Gevorgian, it is
not ruled out that in case of the successful implementation of the
program, there will be an increase in both funds and the number of
participating banks. It was indicated that the maximum amount of
credit per one recipient will make about 80 mln drams (about 181
thousand USD) and is repayable over 5-7 years. This will allow to
provide credits to medium-sized enterprises of the production sphere.