ARARAT BANK AND IZMIRLYAN FOUNDATION SIGN COOPERATION AGREEMENT
By Ara Martirosian

AZG Armenian Daily
28/06/2007

Araratbank and Izmirlyan Foundation signed a $4 million contract
under the programme of business credits co-financing in Armenia,
Tuesday. Chairman of Araratbank Board Ashot Osipyan said at a press
conference that the signatories will give $2 million each under the
contract. He said that a single customer credit limit is $250,000-1
million, the repayment term being 5 years. The annual interest is
14% and lower. Business credits will be issued in terms of Armenian
dram and US dollar. The programme is aimed at creating new jobs,
which implies crediting of the organizations and enterprises that
are potential future VAT payers, Osipyan said.

For his part, Jacques Sarkissian, Senior Vice President of Izmirlyan
Foundation said that despite the success of the programme with Black
Sea Development Bank, the Foundation adopted a decision to stop it as
the bank will issue larger infrastructure credits. In this connection,
the Foundation is searching for a financial partner to create new jobs.

The Foundation has singled out Araratbank as an active and dynamically
developing bank that has a great potential. He did not rule out the
possible continuation of the programme and increase in the funding.

Araratbank is among top ten banks in Armenia by authorized capital
(3.440 bln AMD on April 30 2007).

It is one of the 6 participants in the programme of German KfW bank
and effects transactions on cash service of the Treasury of the
Ministry of Finance and Economy. The bank has launched activity in
ensuring plastic card services. Since June 18 2007, Araratbank is
a government agent for state debt management. On May 31 2007, the
bank’s assets totaled 13.7 bln AMD, liabilities – 9.5 bln AMD, total
capital – 4.2 bln AMD. Among the bank’s clients are 5,000 natural
persons and 500 legal entities. It has 4 affiliated banks. Izmirlyan
Foundation is an investment organization founded in 1994. In Armenia
it contributed to implementing programmes in the spheres of education
and health. Since 1999, Izmirlyan Foundation implements a programme
of small and middle-size enterprise crediting. The experts of the
Foundation say that some 5,000 new jobs were created in the country
due to the programmes implemented by the Foundation.

From: Emil Lazarian | Ararat NewsPress