BSTDB provides a USD 10 million SME Loan to ACBA-CREDIT AGRICOLE BANK

ArmInfo. The Black Sea Trade and Development Bank (BSTDB) provides a USD 10 million SME Loan to ACBA-CREDIT AGRICOLE BANK. According to the BSTDB, the relevant agreement was signed on December 5

The press office of ACBA-CREDIT AGRICOLE BANK has told ArmInfo that the four-year loan will be used by ACBA-CREDIT AGRICOLE BANK to finance specific projects or investment programmes for the creation, modernisation and expansion of industrial, agricultural or service-related facilities of small and medium-sized enterprises (SMEs) in Armenia. 

"We highly appreciate the long-term cooperation with BSTDB that provides us with an opportunity to increase the funding for the SME sector. The agreement will allow supporting a number of entrepreneurs and will contribute to creation of new jobs," ACBA-CREDIT AGRICOLE BANK CEO Hakob Andreasyan said.      

"This fourth loan agreement with ACBA-CREDIT AGRICOLE BANK will further enhance access to longer-term financing for Armenian small businesses. The financing will contribute to the SME sector development, which is BSTDB's strategic priority in Armenia supported by the Government. Our successful cooperation with ACBA-CREDIT AGRICOLE BANK allows to reach out to a growing number of Armenian enterprises promoting job creation, income generation and multiplier effects for the economy," said BSTDB President Ihsan Ugur Delikanli. 

Since 2006, BSTDB provided Trade Finance and SME finance facilities to ACBA-CREDIT AGRICOLE BANK totaling USD 33 million. Since the beginning of its operations in 1999, BSTDB's cumulative financing to support the Armenian SME sector development provided through local banks amounted to about EUR 100 million. 

According to the Financial Ranking of Armenian Banks by ArmInfo, as of October 1 2016, lending to SMEs totaled 18% in ACBA-CREDIT AGRICOLE BANK's total loan book, or over $69 mln. In the banks' aggregate lending to SMEs, ACBA-Credit Agricole Bank's share exceeds 6%. ACBA-CREDIT AGRICOLE BANK traditionally retains leadership in terms of agricultural loans - over 82 bln AMD ($173.2 mln), or about 40% of the total loan book of the Bank as of 1 Oct 2016. In the aggregate agricultural loans of the banking system the share of ACBA-CREDIT AGRICOLE BANK is the biggest - over 53%.

To recall, "ACBA-CREDIT AGRICOLE BANK" CJSC has been operating in Armenia since 1995.  Since September 2006, the majority shareholders of the Bank have been Credit Agricole S.A. (15.56%) and SJSC "Sacam International" (part of Credit Agricole S.A - 12.44%).  Along with them, 10 agricultural cooperative unions hold shares in the capital of ACBA-CREDIT AGRICOLE BANK. By the coverage of the branch network and the number of regional branches, the Bank holds the second position.  According to the key balance sheet figures, ACBA-CREDIT AGRICOLE BANK is in the TOP-5.