EBRD EXTENDS $10 MILLION LOAN TO VTB BANK ARMENIA
ARKA
Dec 24, 2008
YEREVAN
The European Bank for Reconstruction and Development (EBRD) has
extended a $10 million loan in three tranches to enable VTB Bank
Armenia to offer credit to micro-and-small-sized enterprises (MSEs)
across the country.
The project will enable the creditworthy MSEs in Armenia to access
to medium-term reliable sources of finance.
"Micro and small enterprises are the backbone for a developing economy.
There is a significant unmet demand for MSE finance in the country",
said Chikako Kuno, director of the EBRD’s Group for Small Business.
"This facility gains particular prominence in the current environment
of global liquidity constraints and with VTB Bank’s wide regional
presence we hope to increase financial access for the rural, micro
and small entrepreneurs in the country," he added.
Established in 1923, the VTB Bank (Armenia) (formerly the
Armsavingsbank) had been member of the USSR Sate Savings Bank by
1993. Later, the bank was renamed Savings Bank of the Republic of
Armenia. The bank’s absolute shareholder is the Russian VTB Bank.
The chartered capital of VTB Bank (Armenia) totaled 13.9bln drams, with
its own capital amounting to 23.2bln drams on November 1, 2008. The
bank’s assets and loan portfolio reached 98bln drams and 74.8bln
drams respectively, with total liabilities amounting to 74.8bln drams.
A The bank’s net profit exceeded 2.4bln drams.
On December 7, 1992, Armenia became EBRD member with 10mln eur share.
As a chief investor, the bank has allocated 202mln eur for 52 programs
in Armenia.