Announcement

Collapse
No announcement yet.

EBRD lends $5m to Armenia InecoBank to provide finance for micro/SME

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • EBRD lends $5m to Armenia InecoBank to provide finance for micro/SME

    Arka News Agency, Armenia
    Dec 1 2006

    EBRD LENDS $5MLN TO ARMENIA'S INECOBANK TO PROVIDE FINANCE FOR MICRO
    AND SMALL ENTERPRISES

    YEREVAN, December 1. /ARKA/. The EBRD lent $5mln to the Armenian
    Inecobank to provide finance for micro and small enterprises, the
    EBRD office in Armenia reports.
    The EBRD will also increase Inecobank's limit under the Trade Finance
    Programme to $1 million.
    Technical cooperation funds provided by USAID and the EBRD's Early
    Transition Countries Multi-donor Fund will complement the agreement
    and be used to strengthen lending procedures and skills at Inecobank.

    The EBRD loan is intended for on-lending to local micro and small
    enterprises thus addressing a major constraint for the growth of this
    segment of the economy. "At present the still very small Armenian
    banking sector does not deliver finance to micro and small
    enterprises on a large and sustainable scale. By broadening
    Inecobank's potential customer base, the loan will also support the
    bank's expansion," the EBRD's press release reports.
    Inecobank and the EBRD have been in cooperation since 2005 when the
    Armenian bank received the first $1 million loan to expand its
    capacity to serve micro and small enterprises. In the same year
    Inecobank also joined the EBRD's Trade Finance Programme which
    supports the bank's activity in terms of foreign trade lending.
    "The new loan is expected to boost the involvement of an important
    local bank in financing the real economy. This will benefit the
    economy in general, but will also foster growth in the banking
    sector. Facilitating micro and small enterprises' access to finance
    will support the development of a vibrant segment of the Armenian
    economy, which serves as the country's engine for growth," said
    Michael Weinstein, head of the EBRD's office in Armenia.
    Mher Grigorian, Inecobank's CEO said that he welcomed this EBRD loan.
    "Not only will it ensure that Inecobank could meet the growing demand
    for the resources of developing businesses, but it also emphasises
    EBRD's confidence in our bank," he said.
    The Armenian economy has been growing tangibly over the recent years.
    GDP grew by 14% in real terms in 2005, exceeding the 1989 output
    level for the first time. According to the recently published
    Transition Report, the EBRD forecasts GDP's estimated growth rate of
    8.5 per cent.
    Inecobank CJSC was incorporated on February 7, 1996. Since 1997, the
    bank has been the first in Armenia to service trade of goods of wide
    consumption on credit. The bank's assets as of September 30, 2006
    totaled amd 20.7bln, the total capital - AMD 5.8bln, the balance
    sheet profit - AMD 2.1bln. The amount of the bank's authorized
    capital is AMD 2.4bln.
    Inecobank's shareholders are ShoreCap International Company with the
    share of 13.5%, founded in 2003 by the American ShoreBank
    Corporation, and also the International Finance Corporation with the
    share of 10%. R.O. -0--
Working...
X