Tuesday, September 7 2021 17:01

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.