EBRD AND VTB BANK (ARMENIA) SIGN AN AGREEMENT WORTH $10 MLN
ArmInfo
2009-01-20 19:27:00
ArmInfo. The European Bank for Reconstruction and Development (EBRD)
will provide VTB Bank (Armenia) with a $10 mln loan for financing
micro and small entrepreneurship (MSE). The relevant agreement was
signed in Yerevan between Head of EBRD Office in Armenia Michael
Weinstein and Director General-Chairman of Directorate of VTB Bank
(Amenia) Valery Ovsyannikov, Tuesday.
Chairman of the Central Bank of Armenia (CBA) Artur Javadyan also
attended the signing ceremony.
As Ovsyannikov said at a press-conference, the signing of the given
document is the continuation of close and long cooperation between the
VTB group and EBRD. "I think this is the first step of our further
cooperation",- he stressed. He said that the loan will be provided
to the bank in three tranches. It is envisaged to receive the first
tranche late in January. This program will give creditworthy micro and
small enterprises of Armenia an opportunity to make use of reliable
sources of mid-term financing.
The program is implemented within the frames of the Armenia Multi-Bank
Framework Facility II conception. The loan will be technically
supported by Armenia Microlending Programme organized to support
MSE by the program’s participant banks. Technical cooperation funds
were provided by Early Transition Countries Multi-donor Fund and
Shareholders’ Special Fund. At the same time, the head of the bank
said that the funds will be alotted at the interest rate of 16% per
annum. Ovsyannkov added that at the moment MSE crediting portfolio
of VTB Bank (Armenia) amounts to $10 mln.
For his part, CBA Chairman Artur Javadyan said that this is the first
deal in 2009 signed between a participant in the local financial
system and an international structure. "VTB Bank (Armenia) is one
of the largest banks of Armenia, and EBRD is one of the most active
participants in our market. The given deal is a large achievement in
the financial system of Armenia. I am sure we will witness numerous
such deals in 2009 ", – Javadyan stressed. He added that the volume,
quantity and quality of the programs implemented by EBRD allow to
say that Armenia has an excellent partner among the international
structures.
Javadyan pointed out that the signing of the agreement had disproved
the rumors about serious influence of the global financial crisis on
the financial system of Armenia. EBRD has suspended its activities in
a number of CIS countries and is providing loans only to the countries
with stable financial situation.
Weinstein said that the deal was quite significant for EBRD. It
is a big contract for Armenia. Besides, support of private sector,
particularly, micro, small and medium-sized business in Armenia is
an important step for EBRD and is the main direction of the bank’s
activities in the country. Weinstein said that private business was the
engine of economy and is especially important now that the economic
situation is getting increasingly complicated. Even though the deal
is private it proves that EBRD’s actions comply with the plans of
the Armenian Government concerning SME. Weinstein said that even if
the financial crisis had affected Armenia EBRD would have continued
its credit programs in the country.
According to VTB Bank (Armenia), in 2008 the capital of the bank grew
by 14.2% to 23.9bln AMD, assets by 43% to 99.2bln AMD, obligations by
55.5% to 75.4bln AMD, net profit by 3.7 times to 2.9bln AMD, credit
portfolio by 72% to 70bln AMD. The bank attracted 27bln AMD. The
owner of VTB Bank (Armenia) is VTB Bank (Russia).
EBRD is one of the biggest investors in Armenia since 1992. The bank
has so far implemented 52 projects worth 202mln EUR.