PROCREDIT BANK ARMENIA OPENS IN YEREVAN

Noyan Tapan
Feb 6, 2008

YEREVAN, FEBRUARY 6, NOYAN TAPAN. The Armenian bank of ProCredit bank
group (Germany) – the 22nd one across the world – opened in Yerevan
on February 5.

The importance of opening of the bank’s head office was underlined by
the chairman of the Central Bank of Armenia (CBA) Tigran Sargsian,
the first csutomer of the bank – businessman Vardan Sukiasian who
opened a savings account in the bank, and by the executive director
of ProCredit Bank Armenia Bertolt Herzfeld.

During the press conference dedicated to the official opening
of ProCredit Bank Armenia, B. Herzfeld said that like in other
countries, in Armenia ProCredit will also be a customer-orientated
and socially responsible bank that attaches importance to crediting
of small and medium business and to further developing citizens’
tradition to deposit savings. The bank will offer business credits
of over 100 dollars. Customers may open savings accounts (there are
no restrictions on the minimum amount of a deposit).

According to B. Herzfeld, among shareholders of ProCredit Bank Armenia
CJSC are ProCredit Holding joint-stock company (66.66%), German
state KfW bank (16.67%) and the European Bank for Reconstruction and
Development (EBRD) (16.67%).

The deputy executive director of ProCredit Bank Armenia Ashot
Abrahamian announced that the authorized capital of the bank makes
5 bln 790 mln drams (over 18 mln 782 thousand USD). By late 2008,
the bank plans to open 4 branches in Yerevan, one branch in Vanadzor
and one branch in Artashat, as well as to install cash machines and
issue plastic cards by the first half of 2008. He expressed a hope
that their bank will become the first one to issue plastic cards with
chips in Armenia.

The chairman of ProCredit Bank Armenia’s board Kristoff Freitag
said that 6 billion drams has been invested in order to open the
bank. The bank also intends to provide mortgage credits. In the
words of B. Herzfeld, it is envisaged that in 2008 the bank will
form a credit portfolio of 30 million dollars and provide loans to
10 thousand customers. The bank plans to issue bonds.

Tigran Sargsian expressed confidence that ProCredit Bank Armenia will
contribute to development of financial intermediation in Armenia and
encourage competition in the sphere of banking services.

The opening ceremony was attended by the German ambassador to Armenia
Andrea Wiktorin, the first vice president of KfW Roland Siller, the
director of EBRD Small Business Group Chikako Kuno, and the director
general of ProCredit Bank Georgia Phillip Pott.

ProCredit group is composed of 22 banks in Africa, Latin America
and Eastern Europe. The group is managed by Frankfort-based ProCredit
Holding joint-stock company. In late 2007, the current credit portfolio
of ProCredit group made 2.82 bln euros, the number of current credits –
930 thousand, deposits – 2.43 bln euros, the number of current accounts
– 2 mln 822 thousand, the number of employees – 16.8 thousand, the
number of branches worldwide – 621.