Armenia’s Armeconombank receives $15mln syndicated loan from ebrd, other major world banks
14.12.2007,
21:50
Armenia’s Armeconombank received syndicated loan for $15mln from the European Bank for Reconstruction and Development (EBRD) and other major world banks.
YEREVAN, December 14. /ARKA/. Armenia’s Armeconombank received syndicated loan for $15mln from the European Bank for Reconstruction and Development (EBRD) and other major world banks.
‘’This is an unprecedented event in the history of Armenia’s banking system, as apart from EBRD, the lenders are German Commerzbank AG, Austrian Raiffeizen Zentralbank Osterreich AG and Bank Austria Creditanstalt AG, as well as the State Bank of India, the Land Bank of Taiwan and British FBN Bank (UK) Limited,’’ the Executive Director of ‘’Armeconombank’’ Open Joint Stock Company David Sukiasian said at the signing of the respective agreement.
The syndicated loan consists of two separate loans, Sukiasian reported. The first part of the loan - $5mln - is to be allocated by EBRD for 36 months period. The second part of the syndicated loan for $10mln is to be provided by the other banks - $5mln for 18 months with possible extension for another 18 months and $5mln allocated for 12 months with possible extension for another 12 months.
Sukiasian also pointed out that the loan is to facilitate development of small and medium enterprises (SME) in Armenia, particularly to credit organizations in the areas of production, services and trade.
‘’The minimum volume of credit to be provided to clients is $400,000 with 14-16% annual interest rate,’’ he said.
In his turn, the Head of EBRD Yerevan Office Michael Weinstein pointed out the importance of the transaction to Armenia and expressed his satisfaction with the allocation as EBRD aims at supporting foreign banks in investing money in Armenia’s economy. The transaction shows that interest in Armenia increases, Weinstein said.
According to member of Board of Directors of the Central Bank of Armenia (CBA) Vardan Movsisian, in his turn, said that Armenia’s banking system and ‘’Armeconombank’’ strengthen their positions on the international bank arena even more. Movsisian stressed the importance of goal-oriented allocation of the loan and pointed out the importance of the development of small and medium enterprises in the country’s economic development.
The first syndicated loan agreement was signed in Armenia on August 3 2007. Under the agreement, EBRD and Citigroup banking group provided a $12mln syndicated loan to Armenia’s ‘’AKBA-Credit Agricole Bank’’ for 3 years.
‘’Armeconombank’’ Open Joint Stock Company was registered on August 26 1991. More than 75% of the bank’s shares belong to the principal shareholders – EBRD (25% + 1 share) and the founders of ‘’SIL’’ concern Sukiasian family (50.6%).
As of September 30, assets of ‘’Armeconombank’’ were 64bln Drams, total capital – 8bln Drams, balance sheet profit on capital – 5.2bln Drams, profit for January-September – 1.4bln Drams and the credit portfolio was 25.3bln Drams.
Armenia became member of EBRD on December 7 1992 with its share being EUR10mln. As of today, total investment portfolio of EBRD in Armenia is EUR100mln. In 2007 EBRD allocated a record-high volume of financing to Armenia – EUR68mln. 18 projects have been implemented. ($1=302.36Drams). –0--
‘’This is an unprecedented event in the history of Armenia’s banking system, as apart from EBRD, the lenders are German Commerzbank AG, Austrian Raiffeizen Zentralbank Osterreich AG and Bank Austria Creditanstalt AG, as well as the State Bank of India, the Land Bank of Taiwan and British FBN Bank (UK) Limited,’’ the Executive Director of ‘’Armeconombank’’ Open Joint Stock Company David Sukiasian said at the signing of the respective agreement.
The syndicated loan consists of two separate loans, Sukiasian reported. The first part of the loan - $5mln - is to be allocated by EBRD for 36 months period. The second part of the syndicated loan for $10mln is to be provided by the other banks - $5mln for 18 months with possible extension for another 18 months and $5mln allocated for 12 months with possible extension for another 12 months.
Sukiasian also pointed out that the loan is to facilitate development of small and medium enterprises (SME) in Armenia, particularly to credit organizations in the areas of production, services and trade.
‘’The minimum volume of credit to be provided to clients is $400,000 with 14-16% annual interest rate,’’ he said.
In his turn, the Head of EBRD Yerevan Office Michael Weinstein pointed out the importance of the transaction to Armenia and expressed his satisfaction with the allocation as EBRD aims at supporting foreign banks in investing money in Armenia’s economy. The transaction shows that interest in Armenia increases, Weinstein said.
According to member of Board of Directors of the Central Bank of Armenia (CBA) Vardan Movsisian, in his turn, said that Armenia’s banking system and ‘’Armeconombank’’ strengthen their positions on the international bank arena even more. Movsisian stressed the importance of goal-oriented allocation of the loan and pointed out the importance of the development of small and medium enterprises in the country’s economic development.
The first syndicated loan agreement was signed in Armenia on August 3 2007. Under the agreement, EBRD and Citigroup banking group provided a $12mln syndicated loan to Armenia’s ‘’AKBA-Credit Agricole Bank’’ for 3 years.
‘’Armeconombank’’ Open Joint Stock Company was registered on August 26 1991. More than 75% of the bank’s shares belong to the principal shareholders – EBRD (25% + 1 share) and the founders of ‘’SIL’’ concern Sukiasian family (50.6%).
As of September 30, assets of ‘’Armeconombank’’ were 64bln Drams, total capital – 8bln Drams, balance sheet profit on capital – 5.2bln Drams, profit for January-September – 1.4bln Drams and the credit portfolio was 25.3bln Drams.
Armenia became member of EBRD on December 7 1992 with its share being EUR10mln. As of today, total investment portfolio of EBRD in Armenia is EUR100mln. In 2007 EBRD allocated a record-high volume of financing to Armenia – EUR68mln. 18 projects have been implemented. ($1=302.36Drams). –0--
