Press Releases
print

IFC and FMO Help Armenia’s Armeconombank Fund Small and Medium Enterprises


In Yerevan:                                                
Narine Hayrapetyan
Phone: +37410 545242                
E-mail: NHayrapetyan@ifc.org        

In Tbilisi:
Tamar Barbakadze
Phone: +995 32 23 00 00/01/02
E-mail: TBarbakadze@ifc.org

In Washington, D.C.:
John McNally
Phone: + 202 473-1000
E-mail: JMcnally@ifc.org


Yerevan, Armenia, December 30, 2010—IFC, a member of the World Bank Group, is helping Armenia’s Armeconombank expand access to finance for small and medium enterprises and boost economic recovery and growth by mobilizing international funding for the bank.

IFC is providing Armeconombank with a senior loan of up to $5 million, and will mobilize a parallel senior loan of up to $5 million from the Netherlands Development Finance Company, known as FMO. The financing illustrates IFC’s catalyst role mobilizing resources and coordinating efforts of development finance institutions and the private sector to help fill financing gaps caused by the retrenchment of commercial lenders.

“The financing will enable the bank to expand its client base and provide much needed funding for small and midsize businesses from various sectors throughout Armenia,” said Armen Naljyan, CEO of Armeconombank. Armeconombank, the first Armenian bank to receive an IFC loan, in 2004, has a wide branch network throughout the country and joined IFC’s Global Trade Finance Program in 2006.

“Small and medium enterprises play an important role in Armenia’s economy in terms of contributing to total production and creating jobs,” said Thomas Lubeck, IFC Regional Head for the Caucasus. “With this investment, we will help improve competitiveness of these companies and also invite other development finance institutions and the private sector to provide funds for the Armenian market.”

Since Armenia became a member of IFC in 1995, IFC has invested $87 million in 18 projects across industries, including financial markets, general manufacturing, and mining. IFC Advisory Services provides advice through projects focusing on the financial sector, sustainable energy, and investment climate regulatory simplification.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.

For more information about FMO, visit www.fmo.nl.

For more information about Armeconombank, visit www.aeb.am.