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MICROCAPITAL BRIEF: INTERNATIONAL FINANCE CORPORATION (IFC) WORKS WITH INECOBANK TO EXPAND MICROFINANCE ACCESS IN ARMENIA
MicroCapital
Tuesday, February 2, 2010
With the assistance of performance-based grants from the International
Finance Corporation (IFC), Inecobank will expand its microfinance
services in Armenia's rural sector.
IFC will release up to USD 700,000 of performance-based grants to
Inecobank. According to Microfinance Information Exchange, Inc. (MIX),
Inecobank has total assets equivalent to USD 147.5 million, a return on
assets of 4.29 percent and debt to equity ratio of 3.90. Through this
transaction, IFC is launching a new form of support, performance-based
grants structured in tranches, whereby microfinance institutions
are rewarded for achieving development targets. Specifics of the
development targets required to receive different levels of funding
have not been made public. These funds are expected to generate over
71,000 new microloans to individuals and small businesses in the
rural areas of Armenia. Inecobank's Chief Executive Officer Avetis
Baloyan recently stated, "With the onset of the financial crisis,
microfinance proved to be one of the most sustainable products for
the bank and one of its strategic sector priorities."
About International Finance Corporation (IFC): The International
Finance Corporation (IFC), a member of the World Bank Group, supports
private sector development, mobilizes private capital, and provides
advisory and risk mitigation services to businesses. IFC website:
http://www.ifc.org
About Inecobank: Inecobank, a microfinance bank based in Armenia,
was registered in 1996 with the Central Bank of Armenia. Inecobank
provides comprehensive banking services in order to foster growth
of microenterprises and small and medium-size enterprises. IFC is a
shareholder of Inecobank, holding 10 percent of its shares. Inecobank
website: http://www.inecobank.am/
Bibliography: IFC:
http://www.microcapital.org/microfinanceunive rse/tiki-index.php?page=International+Finance+Corp oration+%28IFC%29
Inecobank:
http://www.microcapit al.org/microfinanceuniverse/tiki-index.php?page=In ecobank
Additional Resources: [1] Original article:
http://www.ifc.org/ifcext/eca.nsf/Content /SelectedPR?OpenDocument&UNID=7956BC05D467AAC3 852576B60054FD0E
[2] Mix market data on Inecobank: http://www.mixmarket.org/mfi/ineco
MicroCapital
Tuesday, February 2, 2010
With the assistance of performance-based grants from the International
Finance Corporation (IFC), Inecobank will expand its microfinance
services in Armenia's rural sector.
IFC will release up to USD 700,000 of performance-based grants to
Inecobank. According to Microfinance Information Exchange, Inc. (MIX),
Inecobank has total assets equivalent to USD 147.5 million, a return on
assets of 4.29 percent and debt to equity ratio of 3.90. Through this
transaction, IFC is launching a new form of support, performance-based
grants structured in tranches, whereby microfinance institutions
are rewarded for achieving development targets. Specifics of the
development targets required to receive different levels of funding
have not been made public. These funds are expected to generate over
71,000 new microloans to individuals and small businesses in the
rural areas of Armenia. Inecobank's Chief Executive Officer Avetis
Baloyan recently stated, "With the onset of the financial crisis,
microfinance proved to be one of the most sustainable products for
the bank and one of its strategic sector priorities."
About International Finance Corporation (IFC): The International
Finance Corporation (IFC), a member of the World Bank Group, supports
private sector development, mobilizes private capital, and provides
advisory and risk mitigation services to businesses. IFC website:
http://www.ifc.org
About Inecobank: Inecobank, a microfinance bank based in Armenia,
was registered in 1996 with the Central Bank of Armenia. Inecobank
provides comprehensive banking services in order to foster growth
of microenterprises and small and medium-size enterprises. IFC is a
shareholder of Inecobank, holding 10 percent of its shares. Inecobank
website: http://www.inecobank.am/
Bibliography: IFC:
http://www.microcapital.org/microfinanceunive rse/tiki-index.php?page=International+Finance+Corp oration+%28IFC%29
Inecobank:
http://www.microcapit al.org/microfinanceuniverse/tiki-index.php?page=In ecobank
Additional Resources: [1] Original article:
http://www.ifc.org/ifcext/eca.nsf/Content /SelectedPR?OpenDocument&UNID=7956BC05D467AAC3 852576B60054FD0E
[2] Mix market data on Inecobank: http://www.mixmarket.org/mfi/ineco