Wednesday, March 30 2011 22:25
IFC to provide ACBA Credit Agricole Bank a US$20 million loan for development of micro-financing
ArmInfo. The International Financial Corporation (IFC) will provide ACBA Credit Agricole Bank a US$20 million loan for development of micro-financing focusing on agricultural projects. A relevant contract was signed on March 30.
Thomas Lubeck, IFC Regional Head for the Caucasus, said the given loan will promote mid-term financing in Armenia after the crisis-induced decline of the sphere. Financing for farmers and small enterprises will allow promoting development of the agricultural sectors and support the vulnerable farming economies in the country, T. Lubeck said.
For his part, ACBA Credit Agricole Bank CEO Stepan Gishyan said that the loan will help the bank foster its positions in the market and continue the strategy of SME development focusing on financing of agricultural projects.
By data of ACBA Credit Agricole Bank, assets of the bank totaled $462 million by late Feb 2011 and the loan portfolio grew to $313 million. The equity of the bank totaled $108 million. The loans to the economy made up over 40% of total loan portfolio or 45.6 bln drams in 2010 (up 27.2% per year). Agricultural loans totaled 28.1 bln drams (27.6% of total). Consumer lending totaled 23.8 bln drams or 23.5% of total portfolio, and trade finance totaled 20 bln drams or 19.7% of total.
Since Armenia became a member of IFC in 1995, IFC has invested $110 million in 24 projects across the industry spectrum including financial markets, general manufacturing, energy, mining and chemicals. IFC Advisory Services provide advice through projects focusing on the financial sector, sustainable energy, and regulatory simplification.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.
The state should establish strict rules for its relations with investors, rather than engaging in promiscuous partnerships with them - Artur Ashugyan
Fixing over-ambitious and unrealistic goals most dangerous - expert 
The sale of HSBC Bank Armenia to Ardshinbank to be completed on November 29, 2024
Armenian government approves 2024-2040 demographic strategy 
Armenia`s economy and state competing for sooner collapse - ex-official