IFC HELPS INECOBANK EXPAND FINANCING FOR SMALL AND MEDIUM ENTERPRISES IN ARMENIA
States News Service
November 18, 2008 Tuesday
The following information was released by the International Finance
Corporation:
IFC, a member of the World Bank Group, will expand access to finance
for small and medium enterprises in Armenia by providing a $5 million
financing pakage to Inecobank.
The package comprises a $3 million senior loan to on-lend to small
and medium enterprises and a trade guarantee facility of up to $2
million to facilitate import-export operations. With the guarantee,
the bank will join the IFC’s Global Trade Finance Program and get
access to global network of banks supporting trade finance operations.
Small and medium enterprises account for more than 40% of Armenia’s
gross domestic product but have difficulty obtaining financing
from banks. IFC is supporting Inecobank’s effort to increase such
enterprises’ access to finance, which will help foster economic growth
and generate employment. Part of IFC’s financing also will be used
to support Inecobank’s mortgage lending program and help the bank
adopt international standards in that area.
We value this timely support from IFC, our long-term partner and
shareholder, said Avetis Baloyan, Chairman of Inecobank’s Board. This
new financing will enable us to further develop and expand Inecobank’s
loan products, particularly in the area of SME lending, while the
IFC GTFP facility will help our clients expand their foreign trade
activities.
Snezana Stoiljkovic, IFC Director for Central and Eastern Europe, said:
A viable banking system is vitally important for economic stability
and growth. We are happy to expand our cooperation with Inecobank,
our reliable partner, and thus continue to strengthen the banking
system in Armenia.
This is the second IFC loan to the bank. In 2006, IFC provided
Inecobank with a $3 million loan to expand mortgage finance. IFC is
a shareholder of Inecobank and holds 10 percent of its shares.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people
to escape poverty and improve their lives. We foster sustainable
economic growth in developing countries by supporting private sector
development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new
investments totaled $16.2 billion in fiscal 2008, a 34 percent increase
over the previous year. For more information, visit
About Inecobank
Inecobank is one of the 10 largest Armenian banks by equity and
assets. As of the third quarter of fiscal 2008, the bank had total
assets of approximately $135.9 million equivalent. Inecobank has a
leading position in the local market for loans and housing finance. It
has seven commercial offices in Yerevan and in Shirak, Lori, Kotayk,
and Armavir. The bank focuses on serving small and medium enterprises
and retail clients, especially in consumer financing, where it
has been a pioneer and is the market leader. For more information,
visit