Armenia’s universal credit orgs contribute to poverty reduction

Arka News Agency, Armenia –
June 1 2007

ARMENIA’S UNIVERSAL CREDIT ORGANIZATIONS CONTRIBUTE TO POVERTY
REDUCTION

YEREVAN, June 1. /ARKA/. The activity of Armenia’s Universal credit
organizations (UCO) has a significant role in the aspect of poverty
reduction in the country, said Chairman of the Central Bank of
Armenia (CBA) Tigran Sargsyan during the anniversary of the FINCA
Armenia UCO.
He said that at the current stage of reforms in Armenia, the activity
of the credit organizations is rather significant.
"It is accounted for by the fact that the prior issue for Armenia in
the implementation of economic reforms is the poverty reduction," he
said.
Sargsyan pointed out that the peculiarity of the UCO, in particular,
of FINCA Armenia is that it manages to provide credits to citizens
with little incomes, which creates more favorable conditions for
poverty reduction.
"That is why we welcome the activity of FINCA Armenia and hope that
the implementation of rather ambitious programs that the company has
will contribute to significant rise of its clients," Sargsyan said.
He added that it can have a positive role in improving the
social-economic situation in Armenia.
In his turn, General Executive Director of FINCA International Inc,
shareholder of the FINCA Armenia UCO Rupert Scofield pointed out that
the organization is optimistically determined to implement the
further activity in Armenia in the sphere of microfinance due to the
favourable legal field, which is formed and is functioning in the
country.
"Today the number of our clients is over 11ths and we intend to
enlarge our client base up to 50ths people by 2008," he said.
General Director of FINCA Armenia UCO Yervand Barseghyan added that
as of end of May the organization’s total credit portfolio reached
$8.5mln.
"The Universal credit organization FINCA Armenia" was registered on
March 28, 2006. As of March 31, 2007, the assets of the FINCA Armenia
made AMD 3bln, total capital – AMD 927.8bln, profit during the first
quarter – AMD 14.4mln, and the cumulated profit on the capital
account – AMD 28.1mln. The volume of credit investments made AMD
2.4bln.
As of March 31, 2007, there are 17 credit organizations and 30
branches registered in Armenia. The total assets of Armenia’s credit
organizations make AMD 26,417.5mln as of March 31, 2007. The profit
of Armenia’s credit organizations during the first quarter made AMD
514.7mln. The total capital of credit organizations makes AMD
8,865.9mln. ($1 – AMD 347.87). L.M. -0–