ARMECONOMBANK JOINS GLOBAL TRADE FINANCE PROGRAM

YEREVAN, MAY 29, NOYAN TAPAN. Armeconombank has become the first
Armenian bank to join the Global Trade Finance Program implemented by
the International Finance Corporation (IFC). The agreement on trade
facilitation was signed on May 29. During a press conference following
the signing ceremony, IFC’s Director of the Central and Eastern Europe
Department Edward Nassim said that the IFC will open a credit line of
1 mln USD for a year for Armeconombank. According to him, the program
will encourage development of hundreds of small businesses. In the
words of Armeconmbank’s Chief Executive Officer Ashot Osipyan, the
program will promote foreign trade activities of Armenian businessmen,
allowing them to use such financial instruments abroad as accreditives
and guarantees. He said that the bank attaches great importance to
cooperation with the IFC. The IFC, the private sector arm of the World
Bank Group, provides technical assistance along with financial
resources. He noted that the IFC will allocate credit resources at
quite low interest rates of 6-9%. To recap, in 2004, a 2 mln-dollar
agreement was signed between the IFC and Armeconombank, under which
1.5 mln USD will was allocated for small and medium business
development, and 0.5 mln USD – for mortgage crediting.