Armeconombank to get syndicated credit from the pool of international
banks

2007-12-14 17:45:00

ArmInfo. Today Armeconombank signed a contract with European Bank for
Reconstruction and Development [EBRD] on getting a syndicated credit
$15 mln from the syndicate of foreign banks.

As chairman of Armeconombank board David Sukiasyan told journalists,
this is an unprecedented event in the history of Armenian bank system,
since six biggest world banks are taking part in giving of the
syndicated credit: EBRD, German Commerzbank AG, Austrian – Raiffeizen
Zentralbank Osterreich AG and Bank Austria Greditanstalt AG, Indian
State Bank of India, Land Bank of Taiwan and English FBN Bank(UK)
Limited. Sukiasyan also added that the syndicated credit consists of
the two parts. In particular, the EBRD will allocate $5 mln for 36
months, and all the rest banks – $10 mln, $5 mln for 18 months with an
opportunity to extend the term for another 18 months; the rest $5 mln
for 12 months again with an opportunity of extension for another 12
months. Armeconombank expects to get the credits by the end of next
week.

Sukiasyan also said that the given sums will be directed to crediting
of the small and medium-sized business. The bank will give credits for
2-3 years, in some cases for 5 years. Maximal size of one credit will
be $400 thsd with 14-16% per cent per annum.

For his part, head of the EBRD office in Armenia Michael Weinstein said
that the given syndicated crediting is a symbolic transaction for
Armenia since it is evidence of raising of interest of foreign banks to
Armenian economy. "I think we are on the way of increasing foreign
investments inflow to Armenia", – he said.

Member of Central Bank Council Vardan Movsesyan said that the CB thinks
this event is of great significance as it is evidence of the fact that
the banking system of Armenia in the person of Armeconombank is
actively reaching the foreign level by means of integration in the
world banking system. ‘This credit is evidence of the fact that our
banking system may be considered established. Armeconombank has an
authority of a good stable partner and new prospects for business
contacts are opening for the bank’, – he concluded.