Thursday, June 25 2020 15:50

ArmInfo.ACBA-Credit Agricole Bank has signed a loan agreement with the European Bank for Reconstruction and Development (EBRD) for $ 20 million, which will be used to finance micro, small and medium-sized enterprises affected by COVID-2019.

According to the press service of the Bank, financial resources will  be provided both in drams and dollars.  Since the spread of the virus  in Armenia, ACBA-Credit Agricole Bank has provided loans to SMEs  worth 49.5 billion AMD- to more than 32 thousand partners.

Hakob Andreasyan, CEO of ACBA-Credit Agricole, noted that in such a  difficult period, organizing the process of financing micro, small  and medium-sized businesses in Armenia remains priority issue for the  Bank. <Thanks to the funds raised as a result of cooperation with our  reliable partner, the EBRD, it will be possible to provide new  opportunities to help micro, small and medium-sized enterprises  affected by the pandemic. Especially in a situation when the process  of uninterrupted financing of SMEs is of paramount importance for the  stability of the economy of our country>, he said.

It is reported that during the Covid-19 crisis, the EBRD continues to  be a key partner of Armenia, and this funding is only part of an  effort to help combat the impact of the coronavirus pandemic.

According to the source, the EBRD has taken commitment to assist 38  countries in 2020-2021 with a total investment of 21 billion euros.  EBRD is a leading institutional partner of Armenia. Today the EBRD's  investment portfolio in Armenia totals 1.5 billion euros, which were  aimed at implementing 183 programs that promote the development and  transition of the private sector into a stable, green economy.

According to the Financial Ranking of the Banks of Armenia prepared  by ArmInfo IC as of January 1, 2020,  ACBA-Credit Agricole Bank  retains its position in  the TOP-5 by the main balance indicators. It  is among the five leaders in terms of the branch network coverage,  and holds the 3rd position in the number of regional branches. The  total capital of the bank as of that date was AMD 68.99 billion (the  3rd position), assets - 434 billion (the 4th position), loan  portfolio - 307.6 billion (the 4th position), total liabilities - 365  billion (the 4th position). ACBA-Credit Agricole Bank concluded the  year 2019 with a net profit of 7.4 billion AMD (the 5th position),  increasing it by 18.2% in y-o-y terms. ACBA-Credit Agricole Bank is  the permanent leader in the agricultural lending market - 98.7  billion AMD or more than 32% of the bank's loan portfolio, and  ACBA-Credit Agricole's share in the total agro-loans of the banking  system reaches about 53%. In 2019, the bank increased its corporate  loan portfolio by 37%, with an increase in total loan investments by  33% and assets by 24.2%. In the area of SMEs, the bank placed loans  in the amount of 82.9 billion AMD, or about 27% of the bank's loan  portfolio. (The calculated exchange rate of AMD as of December 31,  2019 was 479.70 AMD/ $ 1). In the structure of the bank's  liabilities, the share of funds attracted from international  financial institutions accounts for about 29% or 105.6 billion AMD  (the 3rd position).

To recall, ACBA-Credit Agricole Bank CJSC has been operating in  Armenia since 1995. The shareholders of the bank as of April 1, 2020  are: SJSC Sacam International (a member of the Credit Agricole S.A  group) - 5% and ACBA Federation CJSC - 95%.