IFC develops activity in Armenia
IFC Executive Vice President and CEO Lars Thunell visited Armenia this week.
Armenia has been an IFC member and shareholder since 1995. IFC has
been active in the nation over the years, with cumulative investments
totaling $87 million in 18 projects across a range of industries. For
the fiscal year that ended June 30, 2010, IFC’s commitments in Armenia
climbed to a record $35.3 million, in response to the global financial
crisis. IFC complements its investment activity in Armenia with an
active advisory program that focuses on banking development,
sustainable energy and investment climate.
August 28, 2010
PanARMENIAN.Net –
IFC investments in Armenia increased from $5 million in 2009 to $35
million as of June 30, 2010. `It is a considerable growth, given the
fact that we had been providing consultative assistance rather than
financial until recent times,’ Mr. Thunell said.
During the visit, he met with Armenian President Serzh Sargsyan and
Prime Minister Tigran Sargsyan.
Mr. Thunell also visited Ameriabank to meet with the bank management.
He was accompanied by a group of IFC officials.
Mr. Thunell has advanced growth of IFC’s business and its mission to
create opportunities in emerging markets and improve people’s lives.
As part of his visit to Armenia, Mr. Thunell visited Ameriabank to be
presented with an account of how IFC funds are being spent under the
bank’s lending projects, including how they are being utilized by
end-borrowers. The partners also discussed options for further
cooperation.
The attendees highlighted that Ameriabank has on-lent the IFC funds
successfully and in a time-efficient manner. The IFC facilities
provided to Ameriabank include a 10 million US dollar credit limit for
international trade finance and a $15 million renewable energy (small
hydro power plant) loan.
The trade finance facility enabled Ameriabank to promote clients’
foreign trade transactions in Armenia. Ameriabank joined the IFC
Global Trade Finance Program (GTFP) as an issuing bank to secure
clients’ import and export operations. This program covers, among
others, small and medium enterprises. Participation in GTFP makes the
bank eligible to cooperate with over 300 other GTFP member banks
worldwide.
Highlighting the importance of promoting the renewable energy sector
for overall economic development, Ameriabank is actively engaged in
its financing through various programs, the press service of
Ameriabank reported.
The IFC $15 million facility is being utilized to provide long-term
funding for 8 small hydro power plant projects in Vayots Dzor,
Gegharkunik and Lori regions of Armenia with overall installed power
of 26.08 MWt and expected output of 80.6 mln KWtph.
The small hydro power plant financing project will enhance local power
generation capacities and diversify power supply sources by reducing
CO¬¬2 emissions and shifting from dependence on imported fuel. The
program of the meeting also featured a short video film on the
progress of Jermuk-2 small hydro power plant project mostly funded by
Ameriabank under IFC renewable energy facilities.
Both parties expect this cooperation between Ameriabank and IFC to
expand and aid future progress of Armenia’s economy.
Besides, IFC signed an agreement with Inecobank to further expand
access to trade finance for small and medium enterprises in Armenia.
Under the agreement, IFC, through its Global Trade Finance Program,
will guarantee individual trade transactions financed by Inecobank.
`Trade is a cornerstone of economic development,’ Thunell said at the
signing ceremony. `As long-term partners and shareholders, we are very
pleased to make support for trade finance yet another stage in our
cooperation with Inecobank. Both the bank and its clients, including
small and medium size companies, will benefit.’
IFC’s relationship with Inecobank began in 2006. Since then, IFC has
provided multiple rounds of financing. Earlier this year, IFC helped
the bank increase its microfinance capacity through a
performance-based grants program that will enable the provision of
more than 71,000 new micro loans to individuals and small
entrepreneurs, mostly in rural areas of Armenia, during a three year
period.
`We are grateful to IFC for its strong partnership and continuous
support,’ Baloyan said at the ceremony. `IFC’s Global Trade Finance
Program will help us to further develop our trade finance activities,
offering our clients more competitive terms, and expanding our
international contacts through the program’s global network of
participating partner banks.’
Victoria Araratyan / PanARMENIAN News
From: A. Papazian