ARMECONOMBANK TO BECOME FIRST ARMENIAN BANK TO RECEIVE CONVERTABLE LOAN

YEREVAN, MAY 29, NOYAN TAPAN. Armeconombank and the International
Finance Corporation (IFC) on May 29 signed a memorandum of intentions
on implementation of two new programs. Armeconombank’s Chief Executive
Officer Ashot Osipyan told reporters that under the first program, the
bank will receive 2 mln USD for 8 years, 1 mln USD of which will be
used for small and medium business crediting, while another 1 mln USD
– for mortgage crediting. According to A. Osipyan, the second program
envisages that the IFC will allocate Armeconombank a so-called
convertable loan of 2 mln USD. This a a new instrument for Armenia: it
allows the creditor to have its stake in Armeconombank’s capital. The
bank may also give its shares to the IFC against all or any part of
this 2 mln-dollar loan. Armeconombank currently ranks 5th among the
Armenian banks by its assets amounting to 77 mln USD. The bank’s net
capital makes a sum equivalent to about 12 mln USD.