EBRD provides $ 25 million to InecoBank for extending support to  private companies

ArmInfo.The European Bank for  Reconstruction and Development (EBRD) is providing a US$ 25 million  loan to InecoBank, a longstanding partner bank in Armenia, for  extending support to private companies that have been affected by the  economic impact of the coronavirus pandemic, the press service of the  EBRD reports.

According to the source, "InecoBank is well placed to channel EBRD  funds to companies that are going through this unprecedented period  of volatility. Getting financial help to businesses and providing  uninterrupted lending is essential for keeping the economy going,"  said Dimitri Gvindadze, EBRD Head of Armenia.

Inecobank has been financing businesses in all sectors in Armenia for  about 25 years. Amid the pandemic the bank is standing by its small  and medium-sized enterprise (SME) clients and, through tailored  solutions, helping them overcome financial difficulties caused by the  crisis. The funds from the EBRD will be used to continue supporting  the SME sector.

"In this emergency situation we will be able to continue offering  special support programmes for the core range of businesses in our  economy to weather the current difficulties and create a brighter  future, and this is once again possible through cooperation with the  EBRD, one of our key partners for many years," said Aren Naltakyan,  CEO of Inecobank.

The EBRD remains an important partner in Armenia during the Covid-19  crisis and the new financing is part of the efforts to help combat  the impact of the coronavirus and support the recovery.

The EBRD is committed to providing support worth EUR21 billion over  2020-21 to the 38 economies where it currently invests. The support  includes a Resilience Framework for existing clients, offering short-  term liquidity and working capital.

The EBRD is a leading institutional investor in Armenia. The Bank has  invested more than EUR1.5 billion across 183 projects in the country  to date, where it is supporting private sector development and the  transition to a sustainable, green economy.  

To note,  in April Inecobank received $ 15 million from the European  Fund for South-Eastern Europe (EFSE) as part of support in responding  to the economic consequences of the coronavirus crisis.  

INECOBANK has been operating in the Armenian market since October  1996. In December 2016, ProCredit Bank merged with INECOBANK, and as  part of this process, an institutional investor in the person of EBRD  was attracted to the capital, which four years later - in the first  quarter of 2020, it left the capital. 

 With allowance for this, the shareholding of the majority  shareholders of INECOBANK now looks as follows: Baloyan Avetis -  38.1%, Safaryan Karen - 32.95%, and the share of investment funds  agRIF Cooperatief U.A. (Belgium) and DWM FUNDS S.C.A.-SICAV SIF  (Luxembourg) remained unchanged at 10.01% and 5.1%, respectively.