Newsfeed

Armenian archaeologists promise to up-end concept of early humans' migration

Armen Martirosyan: Parliament's non-governmental 'troika' anticipating ARFD's return after 10 October

Hakob Andreasyan: Current reforms are as important as those conducted in privatization period

"SIP Talk"- calls to local and international destinations via fixed phone line at affordable tariffs

In 2015 Ameriabank intends to increase its corporate lending portfolio to 520 mln USD and retain leadership in Armenia's banking system

Anelik Bank issues Simple Fast Auto card loan

Hakob Andreasyan: We try to ring-fence farmers from untypical risks

Rustamyan: ARFD's refusal to take part in parliamentary opposition's rally does not mean refusal to cooperate with the forces

RPA members hold confidential meeting

ARFD 'throws up its cards' - it seems the parliamentary four is becoming a three

Heritage Party puts into circulation Armenian Parliament's Bill suggesting official recognition of Nagorno Karabakh Republic

Lydian International Limited plans initial $426 million investment in Amulsar gold project in Armenia in 2015-2016

Orogen Gold raised 1,125,000 pounds through the placing of 1,022,727,272 ordinary shares at LSE

Air France cancels its flights to Armenia due to a strike

Parcels from U.S. do not reach Armenia

Armenian and Polish Foreign Ministers hold political consultations

This year's Viktor Ambartsumian International Prize to be awarded in Yerevan Sept 17

Levon Zurabyan: By regularly changing its Constitution, Armenia is beginning to resemble "banana republics"

A member of the parliament from ARFD calls to listen to the viewpoint of the 124 year old party and take part in the constitutional reforms

2,000-year-old frescoes found in territory of Greater Armenia

Ruben Hakobyan voices the conditions in case of which Heritage party will support Constitutional reforms

Archeologists find an old tomb of a high-class man on the side of Mount Aragats

Seyran Ohanyan: The countersabotage systems set at the borders of Armenia and Karabakh

OSCE MG U.S. Co-Chair: A big window has emerged in the Karabakh peace process

Eduard Sharmazanov: World community must strongly condemn destruction of Armenian cultural and historical heritage in Turkey and Azerbaijan

President of Armenia promises with a problem of citizens deceived by Tonus company and respond in two days

Head of Armenian Parliament's Committee for State and Legal Affairs to present Karabakh frontier guards with night vision devices

Edward Sharmazanov: Anakara's inefficiency is a linchpin in the matter of ensuring security in Europe

Edward Sharmazanov: Azerbaijani provocations imperil stability of the entire Black Sea region

ECHR demands explanations from Baku over refusal to repatriate body of Armenian captive Karen Petrosyan

Russian expert: The resolution of the Basque Provinces is a logical continuation of the lobbyist line on recognition of the statehood of Nagornyy Karabakh

EFSE supports Araratbank fostering MSE banking

  • by Gayane Isahakyan

  • Thursday, June 19, 01:06

The European Fund for Southeast Europe (EFSE) expanded its partnership with Araratbank OJSC (Araratbank, the Bank) by issuing an additional USD 12 million senior loan to fund sub-loans destined for micro and small enterprises (MSEs) in Armenia.  

Araratbank is a long-standing partner lending institution of the EFSE that has always shown a strong commitment to serving the Fund's target group of MSE owners, and thus to supporting the economic activity in the country. This additional long-term financing provided by EFSE will enable Araratbank to offer loans with longer maturity and address the working capital and investment needs of MSEs in a sustainable way.  

"Since our cooperation began four years ago, Araratbank has consistently proved a trustworthy and successful partner for the EFSE," says Monika Beck, Chairperson of the Board of the EFSE. "Supporting Araratbank's ability to provide long-term financing is essential to foster responsible banking practices, and therefore to fulfil the EFSE's mission of facilitating sustainable financing for micro and small enterprises." 

"This latest senior loan is the fourth credit facility Araratbank OJSC has obtained from the EFSE, and this fact alone is the best evidence for the strength and stability of the relationship between our two institutions. Within the framework of the previous agreements, we provided loans for 967 projects related to micro and small enterprise activities. The EFSE's funding enabled us to offer our clients financing under long-term, affordable and competitive terms and to diversify our loan portfolio," stated Ashot Osipyan, CEO of Araratbank OJSC, touching upon the new loan agreement signed for the purposes of stimulating micro and small enterprises in Armenia. He also saluted the effectiveness with which the EFSE Development Facility provided technical assistance in improving the Bank's risk management structures, branch network management and internal audit systems. The senior loan will specifically serve to finance sub-loans with an interest rate in the 10-11% range and a 5-year maturity.  
The European Fund for Southeast Europe (EFSE) was initiated by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. It aims to foster economic development and prosperity in Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, former Yugoslav Republic of Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey. As access to finance is a key success factor in developing the micro, small and medium enterprise segments, the EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. The funding the EFSE provides as long-term finance primarily for micro and small enterprises (MSEs) – but also for private households in the form of home improvement loans – is channelled to these loan customers through local partner lending institutions. Supporting the EFSE's investment activities is the EFSE Development Facility, which provides partner lending institutions with technical assistance, consulting and training services to build operational capacities and professional management.  

Initiated by KfW Development Bank (KfW) on 15 December 2005 from four multi-donor programs under its management, the EFSE is the first public-private partnership of its kind and the first privately managed fund in development finance to leverage private funding for MSE finance in the target region. Capital is provided by donor agencies, international financial institutions and private institutional investors, including the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Commission (EC), the Government of Albania, Small and Medium Business Credit Support CJSC (SMBCS), a subsidiary of the Central Bank of Armenia, the Development Bank of Austria (Oesterreichische Entwicklungsbank - OeEB), the Swiss Agency for Development and Cooperation (SDC), the Danish International Development Agency (Danida), KfW as Lead Investor, the International Finance Corporation (IFC), the Netherlands Finance Company (FMO), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank  (EIB), Sal. Oppenheim and Deutsche Bank.  

Oppenheim Asset Management Services S.a r.l., Luxembourg, and Finance in Motion GmbH, Germany, are, respectively, the EFSE's Fund Manager and Fund Advisor.  

For more information about the European Fund for Southeast Europe, please visit: http://www.efse.lu/ 

As of 31 March 2014, Araratbank OJSC bank's loan portfolio totalled AMD 61,458 million, with small and medium enterprises accounting for 55.2% of the total loan portfolio. At AMD 131,789 million, total assets were up by AMD 6,553 million or 5.2% compared to the year-end. Liabilities amounted to 111,214 million, up by AMD 5,610 million or 5.3% versus the end of 2013.  Total equity amounted to AMD 20,575 million on 31 March 2014, a 4.8% increase (AMD 942 million) compared to the end of 2013. As of 31.03.2014, net profits of Araratbank OJSC for the current year to date amounted to AMD 1,103 million.  Media contact EFSE Media Relations Merle Romer Manager Communications and Events e-mail: press@efse.lu Tel: +49 (0)69 9778 7650-171 Media contact Araratbank Media Relations Anna Baghdasaryan PR Adviser to CEO E mail-pr@araratbank.am Tel: +374 (0)91-45-55-85 www.araratbank.am

Send to a friend

To (e-mail)


Your name


Message


Comments

View comments (0)
  • READ ALL COMMENTS
  • POST A COMMENT

Be first to comment on this article

* Indicates required fields
Video of the day
Fire burning car in the yard

More

Classifieds

Help in searching for missing rare breed dog "malamute".

A. Shiboyan asked the Arminfo Editorial to help her in searching for her missing rare breed dog "malamute".