Friday, January 20 2012 16:32
Araratbank and Eurasian Development Bank launch new micro-lending program
ArmInfo. Araratbank and the Eurasian Development Bank (DBR) signed a credit agreement on Friday. The EDB will lend Araratbank $4mln for a micro-lending support program.
CEO of Araratbank Ashot Osipyan has told journalists that this is the first joint program with the EDB. "We are looking forward to long- lasting partnership and new programs for not only small but also medium-sized and large business," Osipyan said.
He said that the loans will be provided in USD at 12-14% for 3-5 years. The beneficiaries will be companies operating in industry, services, trade and agricultural processing.
Deputy Chairman of the EDB's Board Dmitry Zhurba said that Araratbank is an experienced and trustworthy bank, and his bank is considering the prospects of further cooperation. He said that Araratbank will select borrowers on its own: no more than 50 individuals and companies meeting the EDB's criteria.
Zhurba said that his bank fosters SME development in Armenia, with almost $80mln lent to the Armenian economy so far.
In 2011 Araratbank's assets grew by 39% to 87.7bln AMD, the loans by 51% to 38.6bln AMD, the deposits by 45.7%. ROE made up 19.6%, ROA 3%. The clientele grew by 53%. The net profit totaled 2.2bln AMD. In 2012 the bank is going to open five new branches.
The Eurasian Development Bank was established by Russia and Kazakhstan in Jan 2006 with a view to foster market economy development in the member-states (Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan). The bank's authorized capital exceeds $1.5bln.