Tuesday, December 21 2010 18:33
EBRD provides VTB Bank (Armenia) with third 5 mln USD tranche for on-lending to micro and small enterprises
ArmInfo. The European Bank for Reconstruction and Development has provided VTB Bank (Armenia) with the third 5 mln USD for on-lending to micro and small enterprises (MSE), the press service of VTB Bank (Armenia) told ArmInfo.
"Within the frames of this project, we want to expand the availability of MSE financing both in Yerevan and in all regions of Armenia. The given project provides an opportunity to creditworthy borrowers in the sphere of MSE in Armenia to make use of the reliable sources of financing for up to 5 years at an interest rate of 12% p.a. I am sure that the wide branch network of VTB Bank (Armenia) and the professional approach of employees will ensure successful implementation of this project", said Artak Khachatryan, Head of Retail Business Development Department of VTB Bank (Armenia). He recalled that the agreement of EBRD on provision of a total of 10 mln USD loan to VTB Bank (Armenia) for on-lending to Armenian micro and small enterprises was signed in January 2009. The previous two tranches were worth 2.5 mln USD each.
According to the Ranking of Commercial Banks of Armenia as of 30 Sept 2009 prepared by the Agency of Rating Marketing Information (ArmInfo), in the credit portfolio of VTB Bank (Armenia) about 60% falls on loans to legal entities, which exceeded 41 bln AMD (5th position in the banking system), having grown by almost 10% over Q3 2010. The share of the credit portfolio of the bank in the general assets made up almost 70%. Over Jan-Sept 2010 VTB Bank (Armenia) was in the lead by its net profit - 3.2 bln AMD. By ROA and ROE the banks holds the 1st and the 3rd positions respectively.
To note, Armenia became a member of EBRD on 7 Dec 1992 with share participation of 10 mln EUR. Being one of the largest investors in Armenia, EBRD invested 202 mln EUR in 52 programs. Via 13 commercial banks EBRD implements in Armenia programs on crediting micro, small and medium enterprises, co-financing of medium and large business, trade financing, mortgage crediting.
To recall, VTB Bank (Armenia) is the irreplaceable leader by its branch network - 68 branches, 24 of them in Yerevan and 44 in the regions. The bank became part of VTB Group (Russia) in April 2004, which owns 100% of shares of VTB Bank (Armenia).
Active consumer lending causes double-digit growth in bad loans 
Luys Foundation: Armenian government continues to face challenges in budget planning
Armenia`s brandy and winemaking industry in crisis - economist 
Even at embryonic stage, powerful impetus given to economic activity in energy sector - ENA acting manager 
Armenian NA OKs ENA nationalization 
China preparing to open new chapter of One Belt, One Road initiative with involvement of Armenia - diplomat 
The Merger between "Ardshinbank" CJSC and "Ardshininvestbank" CJSC Has Been Completed
Ticket packets 1.2% of total number of transport tickets in Yerevan