Tuesday, March 9 2010 18:23
Byblos Bank Armenia to get $10mln synthetic loan from EBRD
ArmInfo. The European Bank for Reconstruction and Development (EBRD) is making financing of private business in Armenia more accessible by providing Byblos Bank Armenia with $10mln loan, the first credit in Armenia to have an AMD component.
The press service of Byblos Bank Armenia reports that EBRD's credit private business financing program includes a synthetic loan in AMD equivalent to $5mln, to be used for financing local companies and floating capital. The other $5mln will be spent on co-financing of the bank's bigger loans. In the framework of synthetic lending EBRD provides money at a fixed USD/AMD exchange rate.
The synthetic loan will help Byblos Bank Armenia to reduce currency risk, to prolong periods of crediting of national currency and to enlarge the AMD credit portfolio.
EBRD Financial Director for Central Asia, the Caucasus and Mongolia Mike Taylor says that this program is supposed to stimulate financial intermediation in Armenia's banking system and to create opportunities for financing the real economy sector in AMD. The money will help Armenia to further develop its private sector.
CEO of Byblos Bank Armenia George Sfeir welcomes EBRD's program. He says that this program proves that EBRD trusts Byblos Bank Armenia and the Armenian economy. This deal will allow the bank to further enlarge its strategy on the market.
In early autumn 2007 100% of the shares of ITB were bought by Byblos Bank SAL (Lebanon), after which the bank was renamed into Byblos Bank Armenia. Presently, Byblos Bank SAL holds a 65% stake in the bank with the rest belonging to EBRD (25%) and OFID (10%).
EBRD has so far allocated a total of 335mln EUR for supporting 70 projects in the financial, corporate, infrastructural and energy sectors of Armenia. This year EBRD's credit portfolio in Armenia will grow by $130mln.
The first EBRD synthetic loan in the South Caucasus was given to Azeri AccessBank in late 2009.
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