YEREVAN, December 21, /ARKA/. Bank VTB (Armenia) said today it has reached a fresh tranche of $5 million from the European Bank for Reconstruction and Development (EBRD) as part of a $10 million loan agreement to offer credits to micro and small sized enterprises (MSEs) across the country.
Artak Khachatrian, head of a bank department in charge of retail business development, was quoted in a press release as saying that it is the third tranche that will be used to continue lending to micro and small sized businesses.
He said also the bank wants to extend the lending to micro and small companies both in Yerevan and in the country’s regions. The loans are repayable in 5 years and given at 12% interest rate.
The $10 million loan agreement with EBRD was signed in 2009 January under the Armenia Multi-Bank Framework Facility II. It was accompanied by technical assistance under the Armenia Microlending Program, an institution-building Technical Cooperation Program designed to facilitate the MSE lending activities of partner banks. Technical cooperation funds have been provided by the EBRD’s Early Transition Countries Multi-donor Fund and Shareholders’ Special Fund
VTB Bank Armenia is an important player in the local banking sector of Armenia with the largest branch network in the country. It is fully owned by the second largest Russian state-owned bank VTB Group. -0-
