Wednesday, October 1 2014 17:01
EBRD to provide AMD equivalent of $5 million to ArmSwissbank for SME finance
ArmInfo. ArmSwissbank and European Bank for Reconstruction and Development (EBRD) have made an agreement for a $5 million loan (AMD equivalent) for SME finance.
The document was signed by Gevorg Machanyan, CEO-Chairman of the Board of ArmSwissbank CJSC and Mike Taylor, Director, Central Asia, Caucasus & Mongolia, Financial Institutions Team at EBRD.
G. Machanyan said the loan is unique, as it has been provided in terms of the national dram and will be on- lent also in terms of the national dram. The Bank will on-lend the raised funds to SME at the annual interest of up to 14% and maturity of up to 5 years. The maximal amount of the loan will be 300 million drams. The SME having up to 250 employees can receive financing under the given program.
Machanyan said ArmSwissbank and EBRD launched cooperation in 2010 and the given loan agreement is the third in succession. The first $5 million loan agreement of the two banks was also made to finance SME. In the same year, EBRD open a credit line in the amount of $3 million for ArmSwissbank as part of the Trade Facilitation Programme (TFP). The amount has been increased three-fold over the years of cooperation reaching $9 million. As part of TFP, EBRD grant ArmSwissbank a status of a confirming bank. Until the end of the year, ArmSwissbank will raise another loan in the amount of $5 million from EBRD to finance power-saving projects.
"The Bank highly appreciates the cooperation with the EBRD, as its implies financing on favorable terms, exchange of experience and staff retraining," Machanyan said.
M. Taylor, in turn, stressed the importance of raising funds in terms of the national currency to help de- dollarize the country's economy and make credit funds more accessible for SME.
To note, ArmSwissBank CJSC was founded on 7 October 2004. The founder and CEO of "Franck Muller Watchland" Company, Vardan Sirmakes is the owner of 11670 (80 %) ordinary shares of "ARMSWISSBANK" CJSC. 2918 (20%) ordinary shares of the Bank belong to "Belegingsmachepij Jongo" LLC. The Bank specializes in corporate banking, investment banking and private banking. As of 1 July 2014, the assets of ArmSwissBank amounted to 72.3 bln AMD (24% year-over- year growth). The Bank's authorized capital increased by 44% to 10.1 bln AMD, and the total capital rose by 56% to 21 bln AMD. Over the same period, the Bank's loan book grew by 11% to 30.1 bln AMD, and the portfolio of securities increased by 70% to 32.3 bln AMD. In the first half of 2014, the Bank's profit totaled 1.2 bln AMD (67% year- over-year growth). The Bank's ROA made up 3.38% versus 3.18% in the first half of 2013, and ROE made up 13.61% versus 13.84% in the first half of 2013.
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