EBRD TO INVEST IN ARARATBANK
RIA OREANDA
Nov 5 2008
Russia
Yerevan . OREANDA-NEWS . November 01, 2008. The EBRD is acquiring a
25% plus one stake in Araratbank, a privately-owned Armenian bank,
to support its plans for further expansion, reported the press-centre
of EBRD.
The EBRDs investment will support the development of Araratbanks
retail, medium, small and microfinance lending programmes. Growth
will be achieved by attracting new customers through diversification
of its product range, increasing regional branch network and further
improving its service culture.
The Bank will also be strengthening the Araratbanks internal policies
and procedures, corporate governance and existing management structure
and will be represented on its board.
The EBRD and Araratbank have been partners since November 2007, when
the Armenian bank received a US5 million credit-line for lending to
micro, small and medium-sized enterprises (MSME) and a US 1 million
credit-line for trade financing.
Araratbank, previously called Haykap Bank, was founded in 1991 and
provides a full range of banking services to corporate, MSME and
retail customers. The bank has established a reputation as a small
but reliable and dynamically growing financial institution.
Ashot Osipyan, CEO of Araratbank said: I am delighted to work with
the EBRD and proud to see that the hard work of the past two years
has paid off. Araratbank is one of the leading banks in Armenia with
a strong name and a loyal customer base. I feel assured that with the
EBRDs expertise we can further improve our operations to benefit our
shareholders, clients, employees and the economy of the country.
Mike Davey, EBRD Director for Caucasus, Moldova and Belarus added:
We believe our support will further enhance Araratbanks competitive
position and increase the banks attractiveness.
The EBRD is one of the largest investors in Armenia and to-date has
committed more than 200 million in more than 50 projects.