Announcement

Collapse
No announcement yet.

EBRD Pledges Funding for Armenia's Araratbank

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

  • EBRD Pledges Funding for Armenia's Araratbank

    Global Insight
    December 31, 2007


    EBRD Pledges Funding for Armenia's Araratbank

    by: Dragana IgnjatoviÄ


    The European Bank for Reconstruction and Development (EBRD) announced
    on Friday (28 December) the extension of a $5US-million credit line
    and a $1US-million limit to Araratbank, a privatively owned Armenian
    bank set up in 1991. The loan, which comes under the EBRD's Trade
    Facilitation Programme and the Armenian Multi-Bank Framework II, will
    be complemented by a technical co-operation grant for institution
    building.

    Significance:The EBRD loan is intended for lending to small and
    medium-sized enterprises (SMEs), which should address one of the
    major constraints on Armenia's economic growth, whose potential
    remains constrained by problems in accessing medium- and long-term
    finance. The loan should also bring about more competition among
    local banks and more choice for local customers. The goal of the EBRD
    in granting funding to the Araratbank and many other Amernian
    banks--such as Anelik Bank, which received a $2US.5-million
    SME-designated loan in 2006--is to help the Armenian banking sector
    develop its long-term lending activities, especially in the country's
    underdeveloped regions.
    From: Baghdasarian
Working...
X