EBRD signs loan agreement with ARARATBANK for $ 10 million to promote  women`s entrepreneurship and SMEs

ArmInfo.The European Bank for Reconstruction and Development (EBRD) provided 2 loans to ARARATBANK in national currency, the total amount of which is  equivalent to $ 10 million. The signing of the respective loan  agreement between ARARATBANK and EBRD took place on September 4.

The program, in addition to funding, also provides for the final  beneficiaries technical support, counseling, assistance in risk  management and professional retraining of women entrepreneurs.  Executive Director of ARARATBANK Ashot Osipyan noted that loans will  be provided at an interest rate of 11% per annum with a maturity of  up to 5 years. These funds, he said, will allow the bank to meet the  growing demand for financing from the side of women entrepreneurs and  representatives of micro, small and medium-sized businesses that have  developed activities in rural areas. 

In this regard, he stressed that the bank has already submitted loan  applications from women entrepreneurs for a total of 270 million  drams. "I appreciate the relations with the EBRD and I am glad to  announce that this year, ARARATBANK's cooperation with the EBRD turns  10. For this time we managed to attract over 120 million loan funds  that were used to finance various sectors of the economy and  contributed to the growth of Armenia's GDP. At the same time, thanks  to this cooperation, we succeeded in introducing the best  international banking technologies that have enabled ARARATBANK to  become one of the leading banks in the country, to have competitive  advantages in the market and to be recognized as the best from the  side of international partners, "A. Osipyan said. 

Noting that women entrepreneurs and SMEs have always been in the  center of attention of ARARATBANK. Osipyan added that the program  opens new opportunities for supporting business and creating  additional values in the economy. We started with the Asian  Development Bank (ADB) the first experience in financing women  entrepreneurs, which means that women are more responsible borrowers  - the loan portfolio of the bank did not have any problems related to  repayment of loans of women entrepreneurs, he stressed. Soma  Chakrabarti, Chairman of the Board of Directors of EBRD, who arrived  in Armenia on an official visit, said: "We are happy to continue our  successful cooperation with ARARATBANK. This deal underscores the  mission of the bank - to promote the development of private business  throughout Armenia and to stimulate women's entrepreneurship. I am  sure that this credit line, as well as additional counseling, and  non-financial assistance will help women expand and raise their  business. 

"Speaking about the economic situation in Armenia, the head of the  EBRD attached importance not only to financing, but also to the  technical assistance provided by the Bank." EBRD experts support the  modernization of the Armenian legislation, development of the capital  market, strengthening of cooperation in the format of private-state  partnership. The EBRD intends to assist Armenia in increasing the  attractiveness of the business environment for attracting both  domestic and foreign investments. "There is much more to do in  Armenia. Nevertheless, I should note that the Armenian government  implemented significant steps in this direction ", - stated S.  Chakrabarti.

It should be noted that the women's business is supported by the EBRD  program Women in Business, which includes the countries of the  European Eastern Neighborhood - Armenia, Ukraine, Georgia, Belarus,  Azerbaijan and Moldova. EBRD has successfully implemented assistance  programs in 25 countries. With the help of these funds, local banks  issue loans on affordable terms, in addition, women entrepreneurs are  provided with business consulting and retraining services. Since its  inception in Armenia since 1992, the EBRD has implemented 188  programs in the financial, corporate, infrastructure and energy  sectors, investing 1.11 billion euros, of which 88% are in the  private sector.

According to the Financial Rating of Armenian Banks, prepared by IA  ArmInfo on July 1, 2017, ARARATBANK takes the third position in terms  of annual growth of SME crediting - 38.7%, and in absolute terms -  6th position - 46bln AMD. In the total loan portfolio of ARARATBANK,  the share of SME lending reaches 37.6%. In the total credit  investments of banks in the SME sector, the share of ARARATBANK  increased in the annual section from 5.6% to 7.5%. The majority  shareholders of ARARATBANK on July 1 this year are: one of the  largest oil traders in Armenia - Flush company - 72.73%, EBRD -  18.14%, Rural Impulse Fund II (included in the structure of the  Belgian Incofin Investment Management - Incofin IM) - 8.58%.  ARARATBANK takes the third position in the total number of branches,  of which there are 60, and this position is held by the number of  regional branches (29), and the number of capital (29) is fixed. OJSC  "ARARATBANK" is  operating since November 2005.