ArmInfo.The Central Bank of Armenia (CBA) has approved the delivery and acceptance act concluded between ProCredit Bank and INECOBANK under the merger agreement, and registered INECOBANK's redrafted charter. According to the new charter, INECOBANK is the legal successor of ProCredit Bank. The CBA press office has told ArmInfo that the CBA Board took that decision on 10 May 2016. By the same decision, the CBA has declared ProCredit Bank's No.85 license null and void.
The source says that the CBA's decision comes into effect on 10 May 2016.
To recall, the CBA Board approved and registered the merger agreement of ProCredit Bank and INECOBANK on April 26, 2016. Under the agreement, the banks underwent an integration process and approved the delivery and acceptance act.
To note, the major phase of the ProCredit Bank (Armenia) - INECOBANK merger was completed on 14 December 2015. The EBRD was registered as a stakeholder on December 16. The second phase was of technical nature. When the EBRD joined INECOBANK's capital, the stakes of the majority shareholders were distributed as follows: the aggregate share of the two major shareholders - Avetis Baloyan and Karen Safaryan - became a little more than 51% (versus the previous aggregate 65,57%), the share of EBRD made up 22.7%, and the stakes of the other investors DEG and IFC, which took no part in the transaction, naturally declined. As a result, the bank's capital has
In 2015, INECOBANK's assets grew by 48% to 236.6 bln AMD, with over 65% of this amount being the lending (154.7 bln AMD). By 2016, the total capital of INECOBANK (by IFRS) amounted to 40.7 bln AMD versus the 30 bln AMD minimum threshold to be introduced by the CBA on 1 Jan 2017. In 2015, the net profit of INECOBANK was 4.8 bln AMD, ensuring the Bank's position among the TOP-3.
Established in 1996, INECOBANK is one of the most dynamically developing banks on the financial market of Armenia. ProCredit Bank, in turn, entered the Armenian market on 5 Feb 2008. It was guided by the credit policy of ProCredit Holding AG and specialized in SME
lending. The two banks' merger has ensured the leading position on the market of micro- and SME lending, creating a good basis for considerable enhancement of the service quality.