Wednesday, March 14 2012 18:24
EBRD is considering a US$ 7 million credit line to Araratbank
ArmInfo. The EBRD is considering a credit line to Araratbank of US$ 7 million equivalent for micro, small and medium- sized enterprises, (MSMEs), with at least US$ 1 million allocated for loans to small and medium agribusinesses.
The EBRD's web-site says that the credit line will be provided either in US dollars or Armenian drams depending on Ararat Bank's needs. The local currency lending will be supported by risk sharing early transition country (ETC) local currency programme.
Through the MSME facility, EBRD will add to the overall lending capability of the banking sector in Armenia. Transition impact will be achieved through enhancement of medium-term funding available for local MSMEs as well as through the support of competition in the banking sector. Availability of funds for MSME loans will support the development of the lending market for micro, small and medium businesses and entrepreneurs and contribute to maintain employment which may have suffered following the financial crisis. The option to extend this facility in local currency can benefit Armenia's regions: it will allow to increase lending outside the capital through Araratbank's large branch network and to start lending to the agricultural sector (a new segment for the bank).
On Jan 20 2012 Araratbank signed a US$ 4 million credit agreement with the Eurasian Development Bank. In Nov 2011 it received a US$ 12 million co-loan for supporting MSMEs and stimulating international trade: US$ 3 million from the EBRD and US$ 9 million from Promzvyazbank (Russia), VDK Spaarbank (Belgium) and Byblos Bank S.A.L.
According to Araratbank, in 2011 its assets grew by 39% to AMD 87.7 billion, loans by 51% to AMD 38.6 billion, individual deposits by 45.7%. ROE made up 19.6%, ROA 3%, the net profit AMD 2.2 billion. In 2012 the bank is planning to open five new branches.
The majority shareholders of Araratbank are the Flash company, Armenia's biggest oil trader (74.1%), and the EBRD (25%+1).
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