YEREVAN, March 30. / ARKA /. The International Financial Corporation (IFC), a member of the World Ban Group, and Armenian ACBA Credit Agricole Bank have signed today a $20 million loan agreement to support small and medium businesses and the agricultural sector.
‘This agreement is another step in the years- long partnership between our bank and IFC, a testimony of our mutual trust,’ ACBA Credit Agricole Bank CEO, Stepan Gishyan said during the signing ceremony.
He said the loan will be available to small and medium businesses across the entire country.
‘Any project meeting SME criteria will get the financing as part of this agreement,’ he said.
In his words loans with a repayable period of up to 5 years will vary from $1000 to $100,0000 and the interest rates will be calculated based on risk degree but within existing market rates. According to him, the average interests rate will be 14% and higher.
Thomas Lubeck, IFC Regional Head for the Caucasus, said the IFC is interested in financing Armenia’s small and medium companies because they are responsible for employment outside Yerevan and help advance economy. He said this is the largest credit line opened for an Armenian financial organization by IFC that was preceded by a detailed study of the bank’s performance.
ACBA Credit Agricole Bank was established in 1995. French Credit Agricole S.A owns a 15.56% stake in it, 12.44% is owned by SACAM International, 14.08% by the Unions of Farmers and 12.28% by Ararat province.
Since Armenia became a member of IFC in 1995, IFC has invested $110 million in 24 projects across the industry spectrum including financial markets, general manufacturing, energy, mining and chemicals. IFC Advisory Services provide advice through projects focusing on the financial sector, sustainable energy, and regulatory simplification. -0-
