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The FINANCIAL, Georgia
Dec 29 2007
EBRD funding for Armenia's Araratbank
29/12/2007 11:33
The FINANCIAL -- According to EBRD, the EBRD is extending a USD 5
million credit line and a USD 1 million limit under its Trade
Facilitation Programme to Araratbank, a privately-owned Armenian bank
set up in 1991. The financial package will be complemented by a
technical cooperation grant for institution building.
The loan, which comes under the Armenian Multi-Bank Framework II,
will be provided to Araratbank for on-lending to micro, small and
medium-sized enterprises, thereby addressing a major constraint for
economic growth. Despite strong growth in recent years, Armenia's
economic potential remains constrained by difficulties in access to
medium and long term finance.
The trade finance limit will allow Araratbank to roll out its trade
finance operations and to start offering these products to clients.
Armenian banks still have very limited access to the international
trade finance markets. The EBRD financing to Araratbank will also
allow for more competition among local banks and more choice for
local customers.
Michael Weinstein, Head of the EBRD Resident Office in Yerevan, said
the EBRD funding will allow Araratbank to significantly expand its
longer term lending activities, particularly in the country's
regions. `This is a very important contribution to the growth of
Armenia's enterprise sector as at present the local banking sector
does not deliver finance to micro and small enterprises on a large
and sustainable basis', he added.
Ashot Osipyan, CEO of Araratbank, stated: `We are very glad that the
EBRD continues its cooperation with our bank, which is the most
dynamically developing bank in the country. We are confident that the
agreement will contribute to the fulfilment of our strategic plans.
Araratbank holds a stable position in Armenia's banking system and we
are aiming to reach the leading position in the future.'
The Armenian Multi-Bank Framework, launched in March 2006, aims to
support the increase of financial intermediation of Armenian banking
system and bolster economic growth by making much needed medium-term
funding available to micro and small businesses through credit lines
to selected Armenian commercial banks. The EBRD works with most of
the leading local banks, however this is the first project with
Araratbank.
Dec 29 2007
EBRD funding for Armenia's Araratbank
29/12/2007 11:33
The FINANCIAL -- According to EBRD, the EBRD is extending a USD 5
million credit line and a USD 1 million limit under its Trade
Facilitation Programme to Araratbank, a privately-owned Armenian bank
set up in 1991. The financial package will be complemented by a
technical cooperation grant for institution building.
The loan, which comes under the Armenian Multi-Bank Framework II,
will be provided to Araratbank for on-lending to micro, small and
medium-sized enterprises, thereby addressing a major constraint for
economic growth. Despite strong growth in recent years, Armenia's
economic potential remains constrained by difficulties in access to
medium and long term finance.
The trade finance limit will allow Araratbank to roll out its trade
finance operations and to start offering these products to clients.
Armenian banks still have very limited access to the international
trade finance markets. The EBRD financing to Araratbank will also
allow for more competition among local banks and more choice for
local customers.
Michael Weinstein, Head of the EBRD Resident Office in Yerevan, said
the EBRD funding will allow Araratbank to significantly expand its
longer term lending activities, particularly in the country's
regions. `This is a very important contribution to the growth of
Armenia's enterprise sector as at present the local banking sector
does not deliver finance to micro and small enterprises on a large
and sustainable basis', he added.
Ashot Osipyan, CEO of Araratbank, stated: `We are very glad that the
EBRD continues its cooperation with our bank, which is the most
dynamically developing bank in the country. We are confident that the
agreement will contribute to the fulfilment of our strategic plans.
Araratbank holds a stable position in Armenia's banking system and we
are aiming to reach the leading position in the future.'
The Armenian Multi-Bank Framework, launched in March 2006, aims to
support the increase of financial intermediation of Armenian banking
system and bolster economic growth by making much needed medium-term
funding available to micro and small businesses through credit lines
to selected Armenian commercial banks. The EBRD works with most of
the leading local banks, however this is the first project with
Araratbank.