|
EBRD lends $1m to microbusiness in Armenia
Armenia’s InecoBank is fourth to benefit from EBRD loan
The European Bank for Reconstruction and Development is lending $1 million to
Armenia’s InecoBank to help it provide finance for local entrepreneurs
planning to develop small businesses.
Mike Davey, the EBRD’s country director for the Caucasus, Moldova and Belarus,
said: “The EBRD is delighted to be able to provide this loan to InecoBank. The
loan will help Armenian entrepreneurs get much-needed access to finance to
grow their businesses, and also contribute to the strengthening of the
Armenian financial sector.”
Fast-growing InecoBank, founded in 1992 to provide financial services to
micro- and small enterprises (MSE), is the fourth bank in Armenia to benefit
from a loan from the EBRD under the $10 million Armenia Multi-Bank Framework
Facility. This loan replicates previous successful small business initiatives,
now operating in 19 of the Bank’s 27 countries of operation from Central
Europe to Central Asia.
InecoBank will provide micro loans of up to $10,000 (or the equivalent in
Armenian dram) with a maturity of up to two years and small loans of up to
$60,000 (or the equivalent in Armenian dram) with a maturity of up to three
years.
Avetis Baloyan, chairman of InecoBank, said: “InecoBank is committed to
servicing the dynamic MSE sector in Armenia, and we look forward to providing
finance to this niche market with the help of the EBRD. The EBRD loan will
increase InecoBank’s funding for MSE lending and trigger further growth in the
loan portfolio as well as increase access to finance for micro and small
entrepreneurs”. Michael Weinstein, recently appointed head of the EBRD’s
Resident Office in Yerevan, said that micro and small businesses were a very
important driver of economic development in Armenia and welcomed InecoBank’s
contribution as a provider of finance to MSEs.
InecoBank is one of the most profitable banks in Armenia. ShoreCap
International, a US-based investor with a focus on SME finance, recently took
a 15 per cent stake in the bank. InecoBank also has access to EBRD’s Trade
Facilitation Programme, which enables the bank to service its existing client
base and attract new clients by offering guarantees without cash backing.
|
