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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--
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--