BLACK SEA TRADE & DEVELOPMENT BANK TO EXTEND $5MLN LOAN TO ARMENIA’S ARMECONOMBANK FOR SME

ARKA News Agency
Feb 13 2008
Armenia

YEREVAN, February 13. /ARKA/. The Black Sea Trade and Development Bank
(BSTDB) is to extend a $5mln loan to Armenia’s Armeconombank for small
and medium enterprises (SME). The respective loan agreement between
Armeconombank and BSTDB was signed on February 12 2008, the bank’s
press service reported.

The lending under the loan program is to be provided in accordance with
the regulations and criteria for extending credits to SME developed
by the BSTDB, says the report.

Under the program, Armeconombank is to allocate credits for up to
five years to enterprises operating in the fields of production,
trade and services. Maximum amount of credit to one borrower is to
total $400,000 or the equivalent in Armenian Drams.

"This deal of Armeconombank once more proves the bank’s commitment
toward its policy of supporting further development of small and
medium business in Armenia," the press release says.

"Armeconombank" Open Joint Stock Company was registered on August
26 1991. More than 75% of the bank’s shares belong to the principal
shareholders – EBRD (25% + 1 share) and the founders of "SIL" concern
Sukiasian family (50.6%).

As of January 1 2008, assets of "Armeconombank" were over 50.4bln
Drams, total capital – 8.4bln Drams, and net profit as of the end
of 2007 – 1.8bln Drams. The bank has 45 branches operating in the
territory of Armenia and Nagorno-Karabakh Republic.

The Black Sea Trade and Development Bank (BSTDB) is an international
financial organization founded in 1999. The following countries are
members of the BSTDB: Greece, Russia and Turkey (16.5% of authorized
stock each), Bulgaria, Romania and Ukraine (13.5% each), Albania,
Armenia, Azerbaijan, Georgia and Moldova (2% each). On February
6 2003 the BSTDB started its first program in Armenia – a joint
financial program, "Izmirlian", aimed at support to small and medium
enterprises. ($1=309.82Drams).