YEREVAN, November 29. /ARKA/. Asian Development Bank is to lend $20 million to Armneia’s Ameriabank for onlending to small and medium enterprises.
David Dole, Resident Representative of Asian Development Bank in Armenia, speaking Tuesday at the signing ceremony, said that Asian Development Bank assumes commitment to contribute to development of private sectors in the countries of its presence for supporting economic growth there.
This agreement has been signed as part of ADB’s $65-million credit program aimed at supporting small and mid-scale businesses in Armenia.
Referring to the World Bank’s Doing Business Report, International Finance Corporation’s studies and the World Economic Forum’s Global Competitiveness Report, Dole said that business environment in Armenia has improved a great deal, but there are still some problems, such as financial availability, in the country.
He said that small and medium companies are at disadvantage since financial resources are not available to them, and this disadvantage hobbles their development.
Dole said that the agreement is also aimed at expansion of lending for areas outside of Yerevan. Therefore, 30% of the lent amount is intended for provincial SMEs.
He also said that the program implies technical support for Ameriabank in financing SMEs and expressed hope that this cooperation would be continued.
Gagik Sahakyan, Ameriabank’s director for corporate clients, on his side, said that there are no restrictions connected with focuses of businesses.
“Taking into account that 30% of financing will be carried out outside Yerevan, it can be assumed that processing of agricultural products, tourism and trade transactions of SMEs will be included in the project,” he said answering ARKA News Agency’s question.
Sahakyan also said that average size of a loan would range between $100,000 and $300,000, and the loans would be extended at a lower than Ameriabank’s 11-to-12-percent average interest rate.
Asian Development Bank was established in 1966. The bank has 67 members. In 2010, its financing amounted to $17.51 billion. The current trade financing program amounts to $2.8 billion. Armenia joined the bank in 2005.
Ameriabank CJSC is a universal bank providing investment, corporate and limited retail banking services in a package.
Ruben Vardanyan is the chairman of the bank’s directorial board and Artak Hanesyan is the director general.
Troika Dialogue, one of Russia’s leading investment companies, is a strategic partner to Ameriabank.-0—
