EBRD BOOSTS OPERATIONS OF PROCREDIT BANK IN ARMENIA

armradio.am
09.12.2008 15:38

The European Bank for Reconstruction and Development is providing
ProCredit Bank in Armenia with USD 7 million to further boost its
on-lending to micro and small enterprises (MSEs). The loan will
consist of two tranches of USD 2 million and USD 5 million.

The loan will help ProCredit Bank in Armenia to continue its financing
programme which aims to reach out to small and medium-sized businesses.

Chikako Kuno, Director of the EBRD’s Group for Small Business, said
that micro and small businesses are critical for economic development
and increasing employment opportunities, yet they often lack access
to finance.

This latest loan directly supports this dynamic sector in Armenia. "The
role entrepreneurs play in promoting the transition towards a market
economy cannot be overstated, and that is why we pay so much attention
to this sector", she added.

Bertolt Hertzfeldt, Executive Director of ProCredit Bank in Armenia:
"The increasing diversification of our funding base in general
highlights the growing maturity of the bank. The additional financing
will help us to extend our outreach among small businesses and will
support their development."

Assisting MSE sector is in line with EBRD’s strategy for Armenia. EBRD
is the largest single investor in Armenia having invested some EUR
202 million in 52 projects20in all major sectors of the economy. The
country is part of the Early Transition Countries Initiative, launched
in April 2004, which uses a streamlined approach to financing to
mobilise more investment and encourage economic reform.