Friday, September 10 2010 16:30
Areximbank-Gazprombank Group is on the list of top three SME crediting leaders under Central Bank’s refinancing programme
ArmInfo. Interview of Martin Torosyan, head of small and medium business crediting group of Areximbank-Gazprombank CJSC, with ArmInfo news agency
Over the past year Areximbank-Gazprombank Group increased small and medium entrepreneurship (SME) crediting for many times. What is it conditioned by?
You are right; the bank has considerably increased the SME crediting volumes. Аs of 1 September 2009 the crediting volume was 1.541,848 thsd AMD whereas as of 1 September 2010 this index grew 1.5 times to 3.868,166 thsd AMD. And this is logical. The crisis is stepping back, economy is activating. According to the expectations of the Central Bank of Armenia, within the next 12-month period the index of economy crediting by the banking system will grow by 15%. Taking this into account, the bank considers SME development a perspective direction for itself. By the way, this is also included in the programme of the strategic development of the bank.
Thanks to what resources has the bank ensured this growth?
Firstly, thanks to its own resources, and secondly, through attracting funds from the Central Bank of Armenia. At present about 6.6 mln USD have been attracted for SME refinancing instead of the targeted 4 mln USD. One can say with confidence that Areximbank-Gazprombank Group is on the list of top three SME crediting leaders under the CBA’s refinancing programme.
The bank was considering possible attraction of funds from EBRD and World Bank as new resources of SME financing. What stage are the negotiations at?
The preparatory stage has already been completed. The issue of signing of agreements is on the agenda. It should be noted that EBRD is positively considering the prospects of cooperation with our bank. As regards cooperation with the World Bank, and agreement on beginning of procedure of involvement of CJSC Areximbank-Gazprombank Group in WB’s state program on SME financing on preferential terms. Their specialists are expected to come to Armenia. As regards cooperation with other financial organizations, I can say that as a result of negotiations with KfW German Development Bank, official consent for provision of crediting limit for SME financing was received.
On what terms does the bank provide loans to small and medium enterprises? What spheres of business are represented by the bank’s SME clients?
Now we can provide loans at 14-16% p.a. in AMD and USD for a period of up to 5 years depending on the goal of the credit. Loans are provided in all spheres of economy, particularly, trade, public catering, services and production.
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