IFC ready to purchase shares of Armeconombank in case of additional issue

YEREVAN, June 9. /ARKA/. International Finance Corporation (IFC) is ready to purchase shares of Armeconombank in case of an additional issue, the Head of IFC Office in Armenia Nerses Karamanukian said at the annual stockholders meeting in Armeconombank.

Karamanukian pointed out the successful cooperation of IFC with the bank. Particularly, the Corporation provided credit lines to the bank twice and is satisfied with the results, he said.

Representative of the European Bank for Reconstruction and Development (EBRD) Irakliy Mekvabishvili, in his turn, stressed that Armeconombank is a system-forming bank in Armenia’s banking system and that the bank’s development process is completely reflected in the structure of its liabilities. He pointed out all possible assistance provided to the bank by EBRD, particularly the syndicate loans provided with involvement of major European banks.

The EBRD welcomes the dividend distribution process (annual of 12%) among the stockholders as of the end of 2007. It is not bad, although the stockholders would like even more, Mekvabishvili said expressing hope for improvement of performance by Armeconombank.

Нe also stressed that the EBRD will provide both financial and corporate management assistance to the bank. “We will make every effort so that Armeconombank develops and follows a productive course in its operation,” he said.

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%).

By March 31, assets of Armeconombank had totalled over 43.2bln drams, total capital – 8.6bln drams, and net profit 116.6mln Drams by the end of the first quarter. The bank has 45 branches operating in the territory of Armenia and Nagorno-Karabakh Republic. –0--