FIRST TRANCHE OF WB CREDIT FOR DEVELOPMENT OF SME TO BE PLACED NEXT WEEK

Arminfo
2009-06-10 18:20:00

ArmInfo. The first tranche of $20-25 million of the World Bank’s
credit as part of the project of Access to Finance for Small and
Medium Enterprises (AFSME) will be placed next week, Vice Chairman
of the Armenian Central Bank told ArmInfo.

The WB will provide a total of $50 million in terms of 2-3 tranches
for these purposes. The credit will be fully placed in 2009, he
said. As soon as the first tranche is placed, we will apply to the
second one. V. Gabrielyan said the final interests of the credit for
SME will be equal to market rates at the request of the WB.

The IBRD and Armenian CB signed a credit agreement of $50 million on
February 26. The project will involve enterprises with annual turnover
below 500 million drams ($1.3 million). The credit will provided to
the Central Bank for 26.5 years and a 5-year grace period at the 4%
annual interest. V. Gabrielyan said part of the credit (currently
specified) will be on-lent to SMEs. The funds may be provided to
economic entities on more preferential terms. In addition, $40 million
of the $50 million provided by the Government to support SMEs have
already been placed, he said

From: Emil Lazarian | Ararat NewsPress