Armenian ACBA-Credit Agricole bank signs first $18mln worth syndicated loan agreement with EBRD

YEREVAN, November 7. /ARKA/. Armenian ACBA-Credit Agricole Bank and the European Bank for Reconstruction and Development (EBRD) signed an $18mln worth syndicated loan agreement in Yerevan Thursday.

It is the first agreement on the syndicated loan for a total of $50mln, General Director of ACBA-Credit Agricole Bank Stepan Gishyan told journalists.

The loan is to be extended by the EBRD and a number of commercial banks and will allow ACBA-Credit Agricole Bank establishing bilateral ties with other participants of the loan agreement, Gishyan said.

The loan is extended for 4 years, with the remaining amount to be allocated presumably by the end of the first half of 2009. The interest rates are a commercial secret, Gishyan said.

The loan funds are to be spent on small and medium business crediting and micro-crediting.

Credits will be provided also to trade and service companies, food processing industry and agriculture, said the General Director.

Gishyan stressed the fruitful cooperation established between his bank and the EBRD in general.

The Head of EBRD Yerevan Office Michael Weinstein, in his turn, reported that the funds will be transferred to the bank within the next weeks.

It is a very private deal, Weinstein said adding that the names of other loan agreement participants may be made public in a couple of weeks, when all the documents are arranged.

In 2007, two Armenian banks received syndicated loans – Armeconombank for $15mln and ACBA-Credit Agricole Bank for $12mln.

The ACBA-Credit Agricole Bank CJSC (formerly the Agricultural Cooperative Bank of Armenia) was established in 1995 and obtained a full banking license on March 29, 1996. The bank was founded in the scope of European Union TACIS project. Among the bank’s main stockholders are the French Credit Agricole S.A. (16%), French SACAM International (12.44%) as well as Armenian farmer associations.

Last September, the Credit Agricole banking group (France) purchased 28% of the bank’s shares.

Assets of ACBA-Credit Agricole Bank had totalled 101.3bln Drams by the end of September 2008 with liabilities amounted to 76.5bln Drams. The bank’s net profit reached 3.3bln Drams in January-September, with total capital amounting to 24.8bln Drams at the end of September. ($1=303.99Drams). N.V. –0—