YEREVAN, February 5. /ARKA/. The Armenian Incecobank has denied today concerns of some parliament members that its accusation of 100% shares of ProCredit Bank will result in massive layoffs, saying the move is aimed at creating new opportunities for strengthening of its market position.
The December 10 transaction was financed with equity investments by the European Bank for Reconstruction and Development (EBRD) and two of Inecobank’s major local shareholders, supported by a $20 million loan from the International Finance Corporation (IFC). The EBRD is making a $20.3 million equity investment, acquiring 22.7 percent of shares in the merged group.
“The acquisition of ProCredit Bank and the capital increase will enable us to significantly enhance our services,” Inecobank Chief Executive Taron Ganjalyan said.
According to an Inecobank statement, as a result of the deal Inecobank has become the absolute leader in the market of small and micro-businesses, which has created a basis for a significant improvement of the quality of services.
It said also one of the most important preconditions for the transaction was the similarity of the corporate management culture of the two banks and ProCredit Bank’s professional team that Inecobank regards as “the most important assets of the acquired bank.” -0-
