EBRD PROVIDES $10MLN TO VTB BANK (ARMENIA) FOR SMB CREDITING
ARKA
Jan 20, 2009
YEREVAN, January 20. /ARKA/. The European Bank for Reconstruction
and Development (EBRD) and the VTB Bank (Armenia) CJSC have signed an
agreement on a $10mln credit for the funding of small and medium-sized
enterprises in Armenia.
The credit will be extended in three tranches, and the bank plans to
receive the first funds early this month and will be ready for the
first transactions," Director General, Chairman of the Directorate,
VTB Bank (Armenia), Valeri Ovsyannikov told a press conference at
the Novosti press center.
According to him, the newly signed agreement is the first step in
the long-term cooperation between the VTB Bank (Armenia) and the EBRD.
"The bank will easily utilize the entire amount, but the quality of
credits is more important for us," Ovsyannikov said. He pointed out
that the planned annual interest rate is 16%.
Michael Weinstein, Head of the EBRD office in Yerevan, pointed out that
the SMB crediting was chosen as the most required area of crediting
showing keen demand not only in Yerevan, but also in all the regions
of Armenia.
This is a rather large-scale and significant deal in many aspects,
including the pattern and parameters of the EBRD portfolio in Armenia,
Weinstein said.
He pointed out that the program will allow solvent micro- and small
enterprises of Armenia to make use of reliable mediu m-term financing.
The program is being implemented as part of Armenia Multi-Bank
Framework Facility II. The credit will be accompanied by technical
support by Armenia Microlending Programme arranged by the partner-banks
to support the crediting of micro- and small enterprises.
Early Transition Countries Multi-donor Fund and Shareholders’ Special
Fund provided technical cooperation.
Weinstein pointed out the importance of assisting micro- and small
businesses for the EBRD as they are the cornerstone and mover of the
Armenian economy, which is of special importance amid the financial
crisis.
He pointed out that, despite being individual, the deal has been
welcomed by the RA Government.
Armenia joined the EBRD on December 7, 1992 with a â~B¬10mln share. The
EBRD has invested â~B¬202mln in Armenia under 52 programs.
Supporting micro- and small businesses is among the EBRD’s priorities
in Armenia and in the regions of its activities.
The VTB Bank (Armenia) CJSC (Armsavingsbank CJSC until June 20, 2006)
joined the VTB Group in April 2004. The VTB Bank is sole owner of the
VTB Bank (Armenia). The authorize capital of the VTB Bank (Armenia)
is 13.9bln AMD, total capital 23.9bln AMD (as of December 31, 2008),
assets 99.2bln AMD, credit portfolio 70.2bln AMD, net profit 2.9bln
AMD (in 2008).
The VTB Bank (Armenia) has the fourth largest total assets. It plays an
important role in Armenia’s banking sec tor, having the largest branch
network in the country. With its 78 branches throughout Armenia, new
products intended for low-income sections of the Armenian population,
the bank intends to promote the SMB development in the country.
–Boundary_(ID_DVhoHZcVClMO9nH5PzL30A)–
From: Emil Lazarian | Ararat NewsPress
