STATE CREDIT GUARANTEES OF 342.2 MILLION DRAMS PROVIDED TO 87 ARMENIAN SMEs IN 2006
Noyan Tapan
Dec 25 2006
YEREVAN, DECEMBER 25, NOYAN TAPAN. Under the SME State Support
Program, credit guarantees of a total of 342.2 mln drams (about
813 thousand USD) were provided in 2006, as a result of which the
opportunity was created to ensure a credit package of 628.1 mln
drams for 87 SMEs. Gegham Petrosian, Deputy Executive Director of
the SME Development National Center (SME DNA) of Armenia, stated
this at the December 25 press conference. In his words, the total
amount of credit liabilities of 87 SMEs that received assistance
made 776.8 mln drams. The average amount of the credits provided
to SMEs under the program made 7.2 mln drams, the average amount
of credit guarantees – 3.9 mln drams, the average interest rate of
provided credits – 15.5%. Within the framework of the program on
provision of credit guarantees, in 2006 cooperation agreements were
signed with Inecobank and Unibank, with the number of parner banks
increasing to 5. Under the program on credit guarantees, in 2004-2006,
150 SMEs received guarantees of 565.3 mln drams, ensuring a credit
package of more than 1 billion drams. The total amount of credit
liabilities of 150 SMEs that received assistance made about 1.3 bln
drams. According to G. Petrosian, the results of the monitoring done
among SMEs that received assistance in 2004-2006 under the program
of credit guarantees show that in 2006, 348 jobs were created in 101
SMEs, and as of September 1, 2006, 120 jobs were created by 50 SMEs
that received assistance. It was noted that the program on partial
subsidizing of interest rates of the credits provided to SMEs was
started by ACBA Credit Agricole Bank in cooperation with Anelik
Bank. G. Petrosian said that in 2006 work was done to improve the
material and technical provision and develop skills of employeees of
the SME DNC’s central office and regional branches. SME DNC offices
opened in the cities of Gavar, Martuni and Vardenis of Gegharkunik
marz thanks to cooperation of the UK DFID and the Gegharkunik regional
administration. It is also envisaged to open offices in the cities
of Noyemberian and Berd of Tavush marz in 2007.