ArmInfo. The Eurasian Development Bank (EDB) provided Ardshinbank with a credit line in the amount of $ 20 million for a period of 3 years to provide financial support to the small and medium-sized business sector of Armenia (SME). The corresponding agreement was signed on September 7 by Nikolay Podguzov, Chairman of the Management Board of the Eurasian Development Bank (EDB), and Artak Ananyan, Chairman of the Management Board at Ardshinbank.
"Cooperation with the Eurasian Development Bank has already become a tradition for us. The first agreement between us for $ 10 million was signed back in 2014 and was also intended for the SME sector, and in 2017 the EDB allocated $ 20 million to Ardshinbank to finance foreign trade transactions. The new loan in the amount of $ 20 million will be another impetus in expanding our opportunities for financing small and medium-sized enterprises, "said Artak Ananyan, Chairman of the Management Board at Ardshinbank. He appreciated the relationship with the EDB, in particular, noting that in the person of Ardshinbank, the EDB has a reliable and long-term partner in the Armenian market.
"We will continue to move towards both the expansion of this loan and the involvement of our bank in new programs related to the EDB's strategy in the region," A. Ananyan stressed.
In turn, Nikolay Podguzov, Chairman of the Management Board of the EDB, noted that the EDB attaches great importance to creating conditions on the territory of the Bank's member countries for the development of small and medium-sized businesses. "The SME sector plays a particularly important role for small economies. Taking into account the new agreement with Ardshinbank, the EDB's investments in the financial sector of Armenia will amount to $ 117 million, and these funds will become an additional stimulus for the social and economic development of the Republic. Since the emergence of new companies and business expansion mean both the creation of new jobs and new opportunities for export and growth of related industries and infrastructure, "N. Podguzov noted, saying that, according to the EDB's strategy for 5 years, the volume of investments in Armenia will be about $ 300 million, and the multiplicative effect of EDB investments, taking into account the activity of partners, can reach up to $ 1 billion.
"This loan testifies to the confidence of the EDB in the strategy and prospects of Ardshinbank, and will be aimed at expanding the range of banking services provided to small and medium-sized businesses," said the Chairman of the Management Board of the EDB. According to the Financial Rating of Banks of Armenia as of June 30, 2021, prepared by ArmInfo IC, Ardshinbank takes the 2nd place in terms of the volume of credit investments - $ 1.3 billion or 15.4% in total loans on the market. And in terms of lending to the SME sector, Ardshinbank takes the 4th place - $ 147.7 million. Ardshinbank is the leader in terms of lending to the industrial sector, takes the 2nd place in lending to the catering and service sectors, the construction sector, transport and communications, and is included in the TOP-5 in terms of lending to the trade sector. The Bank completed the first half of 2021 with a net profit of $ 12.8 million, taking the 2nd position in the market by this indicator. To note, yesterday Chairman of the Management Board of the EDB Nikolay Podguzov, at a meeting with Deputy Prime Minister of Armenia Suren Papikyan, stated that the Eurasian Development Bank is interested in a significant increase in its portfolio in Armenia in the next 5 years, seriously considering opportunities for economic investments. According to the Bank's Strategy for 2022-2026, the total amount of EDB investments in Armenia, Kyrgyzstan and Tajikistan will reach $ 500 million by 2026. As stated in the document, separate strategies will be developed for each of the Bank's member countries, taking into account macroeconomic characteristics. In order to achieve the sustainable development goals (SDGs) and strengthen project activities in countries with "small" economies, the Bank plans to quickly respond to the needs and qualitatively strengthen the territorial offices of its presence, a flexible approach to the pricing of credit, investment, commission products, an adaptive approach to implementation in them projects.
To note, the Eurasian Development Bank (EDB) is an international financial institution carrying out investment activities in the Eurasian space. For 15 years, the EDB has been promoting the strengthening and expansion of economic ties, and the comprehensive development of the participating countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. The EDB's authorized capital is $ 7 billion. The main share in the EDB's portfolio is occupied by projects with an integration effect in the areas of transport infrastructure, digital systems, green energy, agriculture, industry and mechanical engineering. In its activities, the Bank is guided by the UN Sustainable Development Goals and ESG principles.