ARARATBANK to receive US$5 million loan from EBRD to finance small and
medium-sized business in Armenia

2008-01-18 21:05:00

ArmInfo. The European Bank for Reconstruction and Development (EBRD)
will extend a credit worth US$5 million to ARARATBANK. The loan is
repayable over 5 years. The loan agreement was signed between Chairman
of ARARATBANK’s Board Ashot Osipyan and Head of EBRD office in Armenia
Michael Weinstein, Friday.

According to Weinstein, the EBRD thoroughly selects banks for
cooperation and this agreement, which is the result of fruitful work
with the Armenian bank, is high assessment for ARARATBANK.

As Ashot Osipyan said, the loan will be provided for on-lending to
micro, small and medium-sized enterprises at an annual interest rate of
14-16% and is repayable over 5 years. He expressed confidence that the
loan will by all means contribute to development of Armenia’s real
sector.

To note, the participants in the EBRD program on crediting small and
medium-sized business in Armenia are Armeconombank, ACBA-Credit
Agricole Bank, Inecobank, and Anelik Bank. Araratbank became the
fifth participant in this program. In addition, ARARATBANK is a
participant in Izmirlian Fund’s program on crediting small and
medium-sized business, as well as the KfW program on development of a
sustainable market for housing finance in Armenia.

According to ARARATBANK’s data, as of January 1, 2008, the total
capital of the bank made up 4.6 bln AMD, assets – 27.8 bln AMD, general
obligations – 23.1 bln AMD. The share of provision of crediting in the
assets was 33,1% or 9.2 bln AMD, most part of which being credits
targeted at economy. As of this date, the mortgage portfolio of the
bank totalled 1.1 bln AMD, the net profit – 315.8 mln AMD.