EBRD Allocates Fresh Loan to Support Small Businesses

Radio Free Europe, Czech Rep.
June 8 2005

EBRD Allocates Fresh Loan to Support Small Businesses

08/06/2005 08:19

The European Bank for Reconstruction and Development (EBRD) has
allocated $1 million to an Armenian commercial bank to support local
small businesses.

Under an agreement signed between the EBRD and Armenia’s INECO Bank
on 7 June, the allocated funds will be issued to small businesses in
Armenia in the form of micro (up to $10,000) and small (up to
$60,000) loans for a period from two to three years.

INECO Bank Executive Director Yervand Barseghian said at a press
conference following the signing of the agreement that the interest
rates for the loans will be close to the rates on the market.

“We have no intention to issue loans at dumping rates,” he said.

Loans available on the market today are issued at interest rates
ranging from 15 percent to 20 percent, differing from bank to bank.

EBRD Director for the South Caucasus, Belarus and Moldova Mike Davey
said the EBRD sees the main direction of its work in Armenia in
financing small and medium-sized business projects.

“The EBRD’s strategy is to work in a range of different sectors here
in Armenia,” he added.

The EBRD implements similar credit projects with four private banks
in Armenia and also has a 25 percent stake in Hayeconombank’s
capital.

According to Davey, the EBRD is conducting negotiations with another
Armenian bank, ACBA, to acquire a certain share in the latter’s
capital.

From: Emil Lazarian | Ararat NewsPress

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