EBRD to lend USD 2 million to ArmSwissBank under Caucasus Energy Efficiency Programme

The European Bank for Reconstruction and Development (EBRD) and ArmSwissBank have concluded a new USD 2 million loan agreement under the Caucasus Energy Efficiency Programme. ArmSwissBank has told ArmInfo that the companies meeting the programme requirements will be able to receive a loan for up to 5 years at 10-11 per annum. 

The source says that the matter concerns the companies engaged in a variety of economy segments such as food processing, agriculture, production, construction, renewable energy, etc. The companies that take measures to introduce energy-conserving and energy-efficient technologies can receive a loan under the programme. They will be provided with free technical support and they can also regain up to 15% of the loan due to the EBRD grants in case they comply with certain requirements.

This is the fourth loan agreement between ArmSwissBank and EBRD within the cooperation established in 2010. This testifies to successful long-term partnership. Since 2010 the loan resources provided to ArmSwissBank by EBRD have exceeded USD 20 million. In 2010 the loan amount was USD 5 million under the first programme (SME finance). The second programme (trade finance) opened a USD 3 million line of credit. Later, this amount was tripled to USD 9 million. In 2014 the Bank received additional resources of USD 5 million in terms of Armenian dram under the SME finance programme.

In July 2014, the EBRD awarded a status of a confirming bank to ArmSwissBank. 

ArmSwissBank cooperates with Factors Chain International, Asian Development Bank (trade finance programme), German-Armenian Fund (SME finance programme, renewable energy programme).  In addition, the Bank cooperates with "National Mortgage Company" UCO and "Affordable Housing for Young Families" UCO.  

To note, "ArmSwissBank" CJSC was established on October 7, 2004 by Mr. Vartan Sirmakes, CEO, founder and 100% owner of "Frank Muller Watchland" company. On February 25, 2005, ArmSwissBank was granted banking license by the Central Bank of Armenia. Vartan Sirmakes is the owner of the Bank's 11670 (80 %) ordinary shares, with the remaining 20% (2918 ordinary shares) belonging to "Belegingsmachepij Jongo" LLC.  As of 1 Jan 2015, ArmSwissBank's assets amounted to 84.5 bln AMD, total capital - 17.9 bln AMD, lending - 38.1 bln AMD, liabilities - 66.6 bln AMD, time deposits - 29.3 bln AMD (with the corporate time deposits prevailing over the personal ones). The Bank's investments in government bonds amounted to 28.6 bln AMD. At the yearend of 2014, the Bank's net profit totaled 2.3 bln AMD and the Bank retained its position among the top ten in the Armenian banking system.

To recall, the EBRD has been active in Armenia since 1993 and to date has invested over EUR900 million in 135 projects. In 2014, the EBRD signed 18 projects worth a total of EUR114 million in Armenia. At the yearend of 2014, the total current portfolio in Armenia amounted to USD350 million. Armenia's energy output is approximately 2.6 times as high as the average indicator in the EU. 50% of the total energy consumption in Armenia is ensured due to the natural gas imported from abroad. The recent survey conducted by the World Bank has demonstrated that the investments in energy efficiency enhancement could enable Armenia to save energy constituting almost 5% of Armenia's GDP. The priority segments are water supply, water disposal and solid waste disposal.