ARMENIA’S STAR SUPERMARKET CHAIN, IFC NEGOTIATING OVER $8 MILLION LOAN FOR 2009-2010
ARKA
March 16, 2009
YEREVAN, March 16. /ARKA/. Armenia’s Star supermarket chain is
negotiating with the International Financial Corporation (IFC) over
US$8mln loan for 2009-2010.
The supermarket chain plans to cooperate with suppliers as part of
the factoring project the company is will implement together with
the European Bank for Reconstruction and Development (EBRD) and one
of the local banks.
"Factoring has many advantages for our suppliers and is a very
important factor for us," said Vahan Kerobyan, executive director of
Star supermarket chain.
The program aims at extending well-timed loans to the company’s
suppliers at lower tariffs than similar banking products.
According to the company’s press service, this year, STAR-EBRD,
a Star supermarket chain shareholder, will extend $4.5mln loan for
the company.
Thus, the company will refinance short-term loans of local banks and
increase its capital investments.
Last week, HSBC Bank (London) extended a $3mln long-term loan to
Star. The money will help the supermarket chain fulfill commitments
to suppliers.
The company’s top management plans to hold press conferences to raise
public awareness of the 2009 financial program.
One of the largest supermarket networks in Armenia, Star has 13
supermarkets across the country. In October 2006, EBRD purchased
28.3% of the company’s shares, with the rest of the stocks owned by
an Armenian resident.