EBRD AND ANOTHER FIVE BANKS PROVIDE SYNDICATED CREDIT OF 15 MILLION DOLARS TO ARMECONOMBANK

Noyan Tapan
Dec 14, 2007

YEREVAN, DECEMBER 14, NOYAN TAPAN. Armeconombank and the European
Bank for Reconstruction and Development (EBRD) on December 14 signed
an agreement on a 15 million-dollar syndicated credit. The executive
director of Armeconombank Davit Sukiasian told reporters that it is an
unprecedented event in the history of the Armenian banking system as
it is for the first time that six internationally recognized financial
institutions: EBRD, Commerzbank AG (Germany), Raiffeizen Zentralbank
Osterreich AG and Bank Austria Creditanstalt AG (Austria), the State
Bank of India, the Land Bank of Taiwan, and FBN Bank Limited (UK)
have participated in provision of a syndicated credit.

D. Sukiasian said that the credit has two parts: 5 million dollars will
be provided by EBRD for a period of 36 months, while the second one (10
million dollars) will be given in two tranches by the above mentioned
banks for 18 and 12 months respectively. The credit is envisaged for
companies engaged in prodiction, service and trade sectors and will
be provided at 14-16% annual interest rate. The maximum amount to be
received by each borrower makes 400 thousand dollars.

The head of the EBRD Yerevan Office Michael Weinstein said that the
banking system is one of the most important branches of the Armenian
economy and it needs to be developed. According to him, interest in
Armenia is gradually increasing, while they are long-standing partners
with Armeconombank, in which EBRD has its share.