ARARATBANK RECEIVES EXTENDED CREDIT LINE FROM EBRD

Economic News
January 9, 2008 Wednesday

Yerevan . OREANDA-NEWS . January 09, 2007. The EBRD is extending a
USD 5 million credit line and a USD 1 million limit under its Trade
Facilitation Programme to Araratbank, a privately-owned Armenian
bank set up in 1991. The financial package will be complemented by
a technical cooperation grant for institution building, reported the
press-centre of EBRD.

The loan, which comes under the Armenian Multi-Bank Framework II,
will be provided to Araratbank for on-lending to micro, small and
medium-sized enterprises, thereby addressing a major constraint for
economic growth. Despite strong growth in recent years, Armenias
economic potential remains constrained by difficulties in access to
medium and long term finance.

The trade finance limit will allow Araratbank to roll out its trade
finance operations and to start offering these products to clients.

Armenian banks still have very limited access to the international
trade finance markets. The EBRD financing to Araratbank will also
allow for more competition among local banks and more choice for
local customers.

Michael Weinstein, Head of the EBRD Resident Office in Yerevan, said
the EBRD funding will allow Araratbank to significantly expand its
longer term lending activities, particularly in the countrys regions.

This is a very important contribution to the growth of Armenias
enterprise sector as at present the local banking sector does
not deliver finance to micro and small enterprises on a large and
sustainable basis, he added.

Ashot Osipyan, CEO of Araratbank, stated: We are very glad that
the EBRD continues its cooperation with our bank, which is the most
dynamically developing bank in the country.

We are confident that the agreement will contribute to the fulfilment
of our strategic plans. Araratbank holds a stable position in Armenias
banking system and we are aiming to reach the leading position in
the future.

The Armenian Multi-Bank Framework, launched in March 2006, aims to
support the increase of financial intermediation of Armenian banking
system and bolster economic growth by making much needed medium-term
funding available to micro and small businesses through credit lines
to selected Armenian commercial banks. The EBRD works with most of the
leading local banks, however this is the first project with Araratbank.