ArmInfo. ARARATBANK concluded with the German investment company DEG (Deutsche Investitions -und Entwicklungsgesellschaft mbH) the second loan agreement for $ 10 million to finance SMEs. As the press service of the Bank told ArmInfo, within the framework of this agreement, $ 1 million from this loan amount will be provided to German companies operating in Armenia.
According to the source, thanks to these funds, the Bank will increase the volume of financing of small and medium-sized businesses, providing long-term loans to the subjects of this sphere.
The German investment company DEG, a member of the KfW banking group, specializes in financing the private sector both in developing countries and in countries with economies in transition.
The first loan agreement between ARARATBANK and DEG was concluded in December 2015. Under this agreement, a loan of $ 10 million, aimed at financing SMEs, was granted with a maturity of 7 years.
According to the Financial Rating of Armenian Banks prepared by NA ArmInfo, ARARATBANK is included in the TOP-6 on SME lending, providing for October 1, 2017 a portfolio of 48.1 billion drams with an annual growth of 53.6%. In the total loan portfolio of the bank, the share of SME loans exceeds 40%, and in the total SME loans on the banking market, ARAPATBANK accounts for about 8%.
