ArmInfo.The Netherlands Development Bank (FMO) provided ARARATBANK with another loan - this time in the amount of $ 10 million. According to the Bank's press service, the funds will be used to develop SMEs, finance energy saving projects or the so-called "green business".
According to the source, in the framework of this regular program, micro-businesses will be provided with loans in the amount of up to $ 10 thousand, SMEs - up to $ 1 million. The loan repayment term is set at 5 years.
The funds raised from FMO will allow not only to expand access to credit in the country, but also help to increase the competitiveness of SMEs, especially since the program provides for a component of lending to energy-saving projects.
The previous $ 20 million loan agreement between FMO and ARARATBANK dates back to April 2018, and these funds were aimed at lending to SMEs, women entrepreneurs and financing business programs of young businessmen under the age of 35, along with their retail lending.
According to ARARATBANK, by January 1, 2020, credit investments and other loans reached 135.9 billion grants. Assets of the Bank as of this date amounted to 222.6 billion drams, and total liabilities - 185.2 billion drams. The total capital of ARARATBANK by January 1, 2020 amounted to 37.4 billion drams. The Bank completed the year 2019 with a net profit of 2.4 billion drams, with an annual growth of this indicator 4.7-fold.
To recall, ARARATBANK OJSC has been operating since November 2005. The majority shareholders of ARARATBANK as of January 1, 2020 are: one of the largest oil traders in Armenia -the Flash company with a 72.33% equity stake, Barsegh Beglaryan (a well-known entrepreneur, the head of Flash) - 22.62%, the Rural Impulse Fund II (part of the Belgian Incofin Investment Management - Incofin IM) - 4.29%.
To note, FMO is one of the largest banks in the world stimulating the development of the private sector. The bank focuses on 3 main areas contributing to economic growth - financial institutions, energy and agribusiness, food and water management. An FMO portfolio covering over 90 countries is valued at 9.6 billion euros. On credit programs, FMO in Armenia, along with ARARATBANK, also works with INECOBANK and Ameriabank.