Tuesday, November 29 2011 20:06
Ameriabank to receive a loan worth 20 mln USD from ADB for on-lending to small and medium enterprises
ArmInfo. Ameriabank will receive a loan worth 20 mln USD from the Asian Development Bank (ADB) for on-lending to small and medium enterprises (SME). Director for Corporate Customers of Ameriabank Gagik Sahakyan and the ADB Resident Representative in Armenia David Dole signed the relevant agreement in Yerevan on Tuesday.
To remind, the given loan is part of the 5-year ADB program on SME financing in Armenia via four commercial banks: Ameriabank, ACBA-Credit Agricole Bank, Ardshininvestbank and INECOBANK. The agreements with ACBA-Credit Agricole Bank, Ardshininvestbank and INECOBANK will be signed next week, David Dole told ArmInfo.
This is the first attempt of the ADB to support the private sector of Armenia and one of the largest deals with the financial system of the country, Dole said. He added that the loan seeks to help Ameriabank to develop the private sector and increase the Bank's portfolio of loans for SMEs. The program also envisages provision of technical support to the Bank in SME financing, Dole said. He expressed hope that the ADB will continue supporting the future as well. Under the given agreement, 30% of the credit resources will be on-lent to SMEs in the regions of the country in order to extending the lending outside Yerevan.
At the same time, he stressed that the ADB is to contribute to development of the private sector in the member countries to support economic development. Dole said that according to the WB Doing Business report, as well as to the report of International Finance Corporation, and Competitiveness Report of the World Economic Forum, the business environment in Armenia has considerably improved, however, there are still some challenges, including the insufficient level of financial affordability.
Director for Corporate Customers of Ameriabank Gagik Sahakyan said that the main beneficiaries will the small and medium enterprises in various fields, including agriculture, processing, tourism and trade.
According to him, the average amount of the loan under the ADB program will be $100-300 thsd, and the interest rate will be lower than 11-12% p.a. Today the Bank's portfolio of loan for SMEs is about $100 mln, and it is envisaged to double it in 2012, like in 2011, he said.
To remind, Armenia joined the ADB in 2005. Its share participation in the authorized capital of the ADB is 10557 shares or 0.301%, and its voting authority is 24266 shares or 0.55%. The total value of the approved ADB projects for Armenia (SMEs exclusive) is $482.54 mln. 2 loan tranches worth a total of $47.9 ml are meant for construction of rural roads, $36 mln for improvement of water supply, $80 mln – for support to the country's budget, $40 mln for construction of the new passenger terminal of Zvartnots Airport of Yerevan. Two more tranches worth a total of $230 mln ($60 mln and $170 mln) are meant for construction of the North-South highway.
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