Yerevan, Armenia, November 18, 2008
—IFC, a member of the World Bank Group, will expand access to finance
for small and medium enterprises in Armenia by providing a $5 million financing
pakage to Inecobank.
The package comprises a $3 million senior loan to on-lend to small and
medium enterprises and a trade guarantee facility of up to $2 million to
facilitate import-export operations. With the guarantee, the bank will
join the IFC’s Global Trade Finance Program and get access to global network
of banks supporting trade finance operations.
Small and medium enterprises account for more than 40% of Armenia’s gross
domestic product but have difficulty obtaining financing from banks. IFC
is supporting Inecobank’s effort to increase such enterprises’ access
to finance, which will help foster economic growth and generate employment.
Part of IFC’s financing also will be used to support Inecobank’s mortgage
lending program and help the bank adopt international standards in that
“We value this timely support from IFC, our long-term partner and shareholder,”
said Avetis Baloyan, Chairman of Inecobank’s Board. “This new financing
will enable us to further develop and expand Inecobank’s loan products,
particularly in the area of SME lending, while the IFC GTFP facility will
help our clients expand their foreign trade activities.”
Snezana Stoiljkovic, IFC Director for Central and Eastern Europe, said:
“A viable banking system is vitally important for economic stability and
growth. We are happy to expand our cooperation with Inecobank, our reliable
partner, and thus continue to strengthen the banking system in Armenia.”
This is the second IFC loan to the bank. In 2006, IFC provided Inecobank
with a $3 million loan to expand mortgage finance. IFC is a shareholder
of Inecobank and holds 10 percent of its shares.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
Inecobank is one of the 10 largest Armenian banks by equity and assets.
As of the third quarter of fiscal 2008, the bank had total assets of approximately
$135.9 million equivalent. Inecobank has a leading position in the local
market for loans and housing finance. It has seven commercial offices in
Yerevan and in Shirak, Lori, Kotayk, and Armavir. The bank focuses on serving
small and medium enterprises and retail clients, especially in consumer
financing, where it has been a pioneer and is the market leader. For more
information, visit www.inecobank.am.