Friday, August 27 2010 11:40
IFC partners with Inecobank to expand trade finance in Armenia
ArmInfo. IFC, a member of the World Bank Group, today signed an agreement with Inecobank to further expand access to trade finance for small and medium enterprises in Armenia.
The press service of IFC reports that IFC Executive Vice President and CEO Lars Thunell and Avetis Baloyan, CEO of Inecobank were present for the signing, which formalizes a partnership that will allow the bank to provide enhanced trade finance solutions for import and export clients and increase its trade finance operations. Under the agreement, IFC, through its Global Trade Finance Program, will guarantee individual trade transactions financed by Inecobank.
"Trade is a cornerstone of economic development," Thunell said at the signing ceremony. "As long-term partners and shareholders, we are very pleased to make support for trade finance yet another stage in our cooperation with Inecobank. Both the bank and its clients, including small and medium size companies, will benefit."
IFC's relationship with Inecobank began in 2006. Since then, IFC has provided multiple rounds of financing. Earlier this year, IFC helped the bank increase its microfinance capacity through a performance-based grants program that will enable the provision of more than 71,000 new micro loans to individuals and small entrepreneurs, mostly in rural areas of Armenia, during a three year period.
"We are grateful to IFC for its strong partnership and continuous support," said Baloyan at the ceremony. "IFC's Global Trade Finance Program will help us to further develop our trade finance activities, offering our clients more competitive terms, and expanding our international contacts through the program's global network of participating partner banks."
Armenia has been an IFC member and shareholder since 1995. IFC has been active in the nation over the years, with cumulative investments totaling $87 million in 18 projects across a range of industries. For the fiscal year that ended June 30, 2010, IFC's commitments in Armenia climbed to a record $35.3 million, in response to the global financial crisis. IFC complements its investment activity in Armenia with an active advisory program that focuses on banking development, sustainable energy and investment climate. IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.
Inecobank CJSC is a full-service bank founded in 1996 with a mission to support Armenia's economic development and improve the welfare of the population. One of Armenia's leading banks, Inecobank posted assets totaling $127.6 million and capital totaling $30.3 million as of June 30, 2010. IFC holds 10 percent of the bank's shares; DEG is a shareholder as well, with a 13.5 percent stake.
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