EBRD - EUROPEAN BANK FOR RECONSTRUCTION AND DEVELO : EBRD SUPPORTS FINANCING TO MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES IN ARMENIA

01/31/2013| 07:48am US/Eastern
US$5 million loan in local currency to Converse Bank

Date: 31 January 2013
The European Bank for Reconstruction and Development (EBRD) is lending
US$ 5 million equivalent in local currency to Converse Bank for
on-lending to micro, small and medium-sized enterprises (MSMEs) in
Armenia. The EBRD's funds will help Converse Bank to expand its
lending portfolio, especially in the country's remote rural areas.

Converse Bank is one of the leading financial institutions in Armenia
and has been an EBRD client since 2008. The bank offers services to
all segments of the market through its wide network of branches in all
regions of the country.

The loan to Converse Bank falls under two important EBRD initiatives:
(i) the Armenian Multi-Bank Framework Facility II (MBFF II) which aims
to support the sustainable development of the country's banking sector
with a special focus on supporting micro, small and medium-sized
enterprises and (ii) the Local Currency Lending Programme in Early
Transition Countries (ETC LCY), which aims to further private sector
development by providing long-term financing and ensuring that
Armenian borrowers, including local enterprises, banks and
microfinance organisations, avoid taking on currency exchange risks.

"The local business will greatly benefit from this facility in the
current economic environment where there is a limited source of local
currency long-term financing. This transaction reinforces the EBRD's
commitment to support the development of private businesses in Armenia
as well as to further strengthen the financial sector in the country,"
said Valeriu Razlog, Head of the EBRD Resident office in Yerevan.

The EBRD has been active in Armenia since the country's independence
and to date has invested over [email protected] million. The Bank is focused on
supporting the development of local enterprises and financial
institutions and specifically seeks to promote a competitive,
transparent and fair business environment in Armenia. In 2012, the
EBRD signed 15 projects worth a total of [email protected] million in Armenia.

Last updated 31 January 2013

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