YEREVAN, December 11. /ARKA/. The investment portfolio of the Eurasian Development Bank (EBD) in Armenia has totaled $94 million since 2009, when Armenia became a EDB member, EDB Chairman Igor Finogenov said Tuesday.
“Armenia was among the first states to become a EBD member in 2009. Since then our investment portfolio on the territory of Armenia has reached $94 million,” Finogenov told reporters at Novosti International press center.
During this period, the EDB allocated loans to Ameriabank, Amrbusinessbank, Araratbank, Areximbank-Gazprombank Group CJSC for micro, small and medium sized business financing, he added.
“In the frames of this program, over 67 small and medium sized enterprises and 210 subjects of micro business have received financing valued at total $64 million,” Finogenov noted adding that today the EDB will distribute $15 million to VTB Bank (Armenia) for SME lending.
According to him, Armenia tops the list of the CIS member states with high SME development rates.
“It is linked to the historical traditions. Indeed, small and medium sized business, including family business, is developed in Armenia, and I refer to it as to the strength of the Armenian economy. It can really foster the growth of the other economic sectors in Armenia,” he clarified.
Finogenov also highlighted within the reported period, the bank also financed the wheat import program valued at $30 million. The program eased the outcomes of the global wheat deficit for the Armenian importers in 2011.
The Eurasian Development Bank, as an international organization made up of 6 member states, continues developing its investment policy.
“Over 6 years of our operation we have been implementing 70 projects valued at over $4.5 billion.”
The EDB was established by Russia and Kazakhstan in January 2006 to support the market economy of its member states. Charter capital of the bank exceeds $1.5 billion. Member states of the bank are the Russian Federation, Kazakhstan, Armenia, Belarus, Tajikistan and Kyrgyzstan. -0—
Финансы на армбанкс и АРКА
МВФ ПРЕДОСТАВИТ АРМЕНИИ ДОПОЛНИТЕЛЬНОЕ ФИНАНСИРОВАНИЕ В РАЗМЕРЕ $51,43 МЛН.
IMF TO PROVIDE ARMENIA WITH ADDITIONAL LOAN OF $51.43 MILLION
YEREVAN, December 11, /ARKA/. IMF resident representative to Armenia, Guillermo Tolosa, said today IMF Executive Board completed December 10 its fifth review of Armenia’s economic performance under a program supported by Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements. He said the completion of the review enables the Armenian authorities to draw an additional SDR 33.5 million (about US$51.43 million), bringing total disbursements under the arrangements to SDR 211.8 million (about US$324.4 million). The three-year SDR 266.8 million (about US$408.7 million) EFF and ECF arrangements with Armenia were approved by the IMF’s Executive Board on June 28, 2010.
According to an IMF press release, the Executive Board also approved the authorities’ request for a waiver of nonobservance of the end-June 2012 performance criterion on the floor on net official international reserves, which was missed due to unexpected market pressures, and the modification of this same performance criterion for the end-December 2012.
The Executive Board also concluded the 2012 Article IV Consultations with Armenia, which discusses economic policies from a medium-term perspective, and considered an Ex Post Assessment Update report on Fund relations with Armenia.
Following the Executive Board’s discussion, Ms. Nemat Shafik, Deputy Managing Director and Acting Chair, stated: “Armenia’s economy has continued to recover from the deep recession experienced in 2008-09 in the context of the global financial crisis. Growth accelerated in 2012, and is expected to be around potential in 2013. Nonetheless, vulnerabilities remain, particularly due to the large current account deficit and high degree of dollarization in the banking sector.
“Policies under the program remain broadly on track, but net international reserves came under unexpected pressures in May-June when the central bank acted to avoid a destabilization of the market. Since then, the central bank has been able to buy back part of the lost reserves. However, full recovery of reserves would have involved undue pressures on the market.
“Fiscal consolidation has continued to play a key role in the stabilization of the economy, and the authorities’ commitment to continue with that fiscal strategy is welcome. Going forward, fiscal consolidation should rely more on increasing revenues to allow for higher social and investment spending while reducing the deficit and debt.
“The financial sector remains sound, and steps have been taken recently to enhance supervision and the liquidity of the system. For the business environment more generally, structural reforms have continued, but further measures are needed to strengthen the legal framework, improve governance, and enhance competitiveness.” M.M. -0-
