Tuesday, November 8 2011 18:25
ARARATBANK to receive a syndicated loan worth 12 mln USD in a lump sum
ArmInfo. ARARATBANK will receive a syndicated loan worth 12 mln USD in a lump sum for on-lending to micro, small and medium enterprises and stimulating the international trade. Executive Director of ARARATBANK Ashot Osipyan told journalists on Tuesday that under the already signed agreement on syndicated lending, the European Bank for Reconstruction and Development (EBRD) will provide a total of 3 mln USD, and the other 9 mln USD is expected from 3 commercial banks: Promsvyazbank (Russia), VDK Spaarbank (Belgium) and Byblos Bank S.A.L (Lebanon).
When replying to an ArmInfo correspondent's question, Osipyan said that this is the first syndicated loan throughout the history of ARARATBANK's activity, and the redemption period ranges from 1 to 5 years. He pointed out that the interest rates of lending for exporting companies will be 9% p.a., while the bank's average annual interest rate for economic entities is 13%. According to Osipyan, the resources from the syndicated loan may be directed to all sectors of economy, except agribusiness. "The given loan opens a new stage in ARARATBANK's activity, as for the first time the Bank has entered the international market on attraction of resources directly from the commercial banks. The loan not only demonstrates the confidence of international structures in ARARATBANK, but also allows expanding the limits of financing", Osipyan stressed. He added that at present the Bank's portfolio of lending to small and medium enterprises exceeds 20 bln AMD.
For his part, Lorenz Jorgensen, Head of Loan Syndications of the EBRD, pointed out that the provision of the given loan confirms the EBRD's willingness to long-term cooperation with ARARATBANK. The fact that ARARATBANK is the leader in the local market by lending to micro and small enterprises is important for the EBRD and demonstrates that the syndicated loan will be used as intended: it will enlarge the customers' opportunities and will contribute to development of the market of micro, small and medium enterprises in Armenia, he stressed. Jorgensen added that the loan is being provided thanks to the good reputation and strong management of ARARATBANK.
He also pointed out that despite the crisis phenomena, the EBRD continued and continues contributing to development of business infrastructures in Armenia, and the share of lending to the private sector is 95% of the EBRD's credit portfolio in the republic. Since 1992 the EBRD has funded over 100 projects worth a total of over $500 mln in Armenia. To remind, earlier Promsvyazbank reported that the loan funds will be provided to ARARATBANK for 1 year, and the main amount of the loan is to be redeemed in October 2012.
According to the latest balance data, by late September 2011 the assets of ARARATBANK increased by 6.39% or by 4 bln AMD as compared to the beginning of 2011, provision of crediting - by 38.67% or by 9.8 bln AMD, time deposits of individuals - by 27.12% or by 2.5 bln AMD, the number of customers - by 38.5%. In Jan-Sept 2011, the net profit of the Bank amounted to 1.718 bln AMD (75.2% y-o-y growth). To remind, since 2008 the EBRD has been participating in the capital of ARARATBANK with 25%+1 share.
Expert: Electricity tariff containment in Armenia is only temporary
Political Scientist: Armenia`s withdrawal from Eurasian Economic Union (EAEU) to result in its dependence on Azerbaijani and Turkish markets
Artur Avetisyan: All discussions regarding the choice of a future NPP model will remain mere talk until there is a vision for strategic development
ATI.SU: Demand for international cargo transportation 30% up in Armenia
Civil Contract nominates Armen Ktoyan for Central Bank Board Member position
Armenia, France considering prospects for expanding technological cooperation 
Over 99.9% of wheat imported to Armenia comes from Russia