The loan proceeds to be used for on-lending to SMEs and larger companies in line with the Policy Statement of the Resilience Framework.
The Project will enable InecoBank to continue extending liquidity support to private sector companies in Armenia to help them sustain their operations and retain workplaces.
ETI score: 70
Resilient: The Project will contribute to the financial resilence of InecoBank by enabling it to continue lending operations despite balance sheet pressures triggered by the economic fallouts from the pandemic.
Competitive: The Project will help InecoBank retain its strong position in the market by remaining active and efficient market player through sustained lending operations.
Inecobank CJSC is a long-standing partner bank of EBRD. It is the 5th largest bank in Armenia in terms of total assets and net loan portfolio with 5.8% and 6.7% respective market shares as of YE 2019. InecoBank is also one of the leading banks by profitability; it posted the second best financial result in the market with RoE of 17.9% as of YE 2019.
EBRD Finance Summary
A senior unsecured loan in the amount of up to USD 25 million under the Resilience Framework. The loan will be provided in 2 tranches.
Total Project Cost
COVID-19 crisis response: EBRD financing effectively bridges a liquidity gap due to adverse market conditions caused by the COVID-19 crisis. EBRD remains an anchor IFI in Armenia during the crisis on the back of established close relationships with local banks and prompt response to their financing needs.
Environmental and Social Summary
Categorised FI (2019 ESP). IB's past performance and annual environmental and social (E&S) reporting to date for the existing exposures has been satisfactory. InecoBank will need to comply with PRs 2, 4 & 9 and further comply with the EBRD's Environmental and Social Procedures for Corporate Loans, SME and Micro Loans, and TFP Environmental and Social Procedures, and will be required to submit annual environmental and social reports to EBRD.
Company Contact Information
PSD last updated
18 May 2020
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.