EBRD TO PROVIDE $15 MILLION LOAN TO ARMECONOMBANK

ARMENPRESS
Dec 14, 2007

YEREVAN, DECEMBER 14, ARMENPRESS: The European Bank for Reconstruction
and Development (EBRD) will make its second syndicated loan in
Armenia with a $15 million credit to Armeconombank. The agreement
to this effect was signed today by Armeconombank executive manager
David Sukiasian and head of the EBRD Yerevan office Michael Weinstein.

The credit is to target the growing financial requirements of local
entrepreneurs engaged in industry, trade and services.

David Sukiasian described the credit as ‘unprecedented’ because the
EBRD is providing only 5$ million of the loan while the rest $10
million will be provided by five other European banks.

He said the biggest amount of a credit available to Armenian
entrepreneurs will be equal to $400,000. The credits will be available
at 14-16 percent annual interest rates, which Sukiasian said are in
line with local demands.

Weinstein said the agreement is another evidence of the growing
interest of European banks in Armenia. He added that micro and small
businesses are vital for economic development and play a crucial role
in promoting the country’s transition towards a market economy.

"This transaction will directly support these important sectors by
providing increased access to financing", he added.

EBRD and Armeconombank began cooperation in 2000 and since then they
have implemented $20 million worth different programs.

Earlier this year EBRD made its first syndicated loan in Armenia with
a ~@12 million credit to ACBA Credit Agricole Bank.