Wednesday, August 1 2012 20:14
EBRD provides INECOBANK with AMD loan worth $8 mln
ArmInfo. The European Bank for Reconstruction and Development (EBRD) has provided INECOBANK with an AMD synthetic loan worth $8 mln for further on-lending to small and medium enterprises (SMEs).
The joint press release of the organizations says that this is the eighth loan agreement signed between INECOBANK and the EBRD. The funds have been provided to INECOBANK under the program on provision of banking guarantees for trade financing and stimulation of SME development in Armenia. In 2007 the EBRD acknowledged INECOBANK the most active Armenian bank in terms of trade financing.
According to the source, the AMD funds attracted from the EBRD will give an opportunity to INECOBANK to provide loans in the national currency without assuming any possible currency risks. "This loan will allow the Bank to increase the amount of AMD loans to SMEs and at the same time to contribute to sustainable development of the private sector of the country's economy", says Avetis Baloyan, Executive Director of the Bank.
INECOBANK cooperates with more than 25 international financial organizations, including International Finance Corporation, Deutsche Investitions-und Entwicklunsgesellschaft mbH, EBRD, Asian Development Bank. As of 1 July 2012, the funds attracted under international programs exceeded 64% in the total liabilities of the Bank and amounted to 49.3 bln AMD, with the growth over the first half of 2012 being 21%.
According to the Ranking of Armenian Banks by the Agency of Rating Marketing Information, INECOBANK holds the 3rd position in the banking system of Armenia by SME financing with nearly 40 bln AMD as of 1 July 2012 (14% growth over the first half of 2012, 11% growth over Q2). The share of SME loans in the credit portfolio of the Bank totaled 53.3% as of late June. Over the first half of 2012, the provision of crediting of the Bank grew by 17.2%, over Q2 2012 - by 13.6%, and totaled 75 bln AMD by 1 July 2012. The total assets of the Bank amounted to 93.3 bln AMD (7% growth over I half of 2012, 8.6% growth over Q2 2012). Over Q2 2012 the total capital of the Bank grew by 3.3% to 16.4 bln AMD (9.4% growth over I half of 2012).
To note, the majority shareholders of INECOBANK CJSC are Avetis Baloyan (37.1%), Karen Safaryan (Russia, 33.2%), Deutsche Investitions-und Entwicklunsgesellschaft mbH (DEG), member of the KfW banking group (13.5%), IFC (10%).
To recall, in 2012 the EBRD is going to invest $120-125 mln in Armenia's economy. Since 1992 the EBRD's investments in 106 programs have exceeded 516 mln EUR.
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