IFC, Armeconombank sign agreement for business development

July 29 2004


YEREVAN, JULY 29, ARMENPRESS: One of the leading Armenian
commercial banks, Armeconombank and the International Finance
Corporation (IFC) signed a two million credit agreement on Wednesday
to develop small and medium-size business and housing mortgage
Armeconombank managing director Ashot Osipyan said the credit will
be provided in two tranches – each with a five year of repayment
period. Central Bank chairman Tigran Sarkisian said cooperation with
foreign lending organizations gives the bank a good opportunity to
offer new services to its customers, particularly, concerning housing
mortgage credits. Osipyan said interest rates on housing mortgage
credits went down from 24-25 percent, when the bank started giving
such credits, to 16 percent now. He said the new loan will help to
take the rates down to 14 percent and extend the repayment period
from 4 to 5 years.
The great portion of the new loan–$1.5 million- will go for
business development and the rest will be added to housing mortgage
The director of IFC Central and Eastern Europe Department, Edward
Nassim, said this is the first time when the IFC provides a credit to
a commercial bank in Armenia. This proves that the situation in the
banking sector is improving, he added
Until now the IFC has invested in Armenia $7 million, of which $5
million in Marriott Armenia Hotel and $2 million to ACBA bank for
implementation of a leasing credit program.