EDB Launches Microcredit Programme in Armenia

EDB Launches Microcredit Programme in Armenia

Almaty, 20 January 2012. The Eurasian Development Bank (EDB) signed today a $4m loan agreement with Araratbank for three years to finance a microcredit programme in Armenia.

The loan will be provided within the EDB’s programme to support microfinance through the provision of targeted loan facilities to financial institutions.

Araratbank will select sub-borrowers on its own. These will be individual entrepreneurs and companies that meet certain EDB’s requirements: sub-borrowers’ personnel should not exceed 50 people. Sub-loans for a total between $1,000 and $100,000 will be provided for one to three years.

The project launched by the EDB and Araratbank will help create favourable conditions to develop micro and small businesses in Armenia in a sustainable fashion, advance competition and production, expand the range of goods and services, and improve the quality of products. The support to micro and small businesses is expected to have a significant effect on the development of Armenia’s market economy.

Additional Information

Araratbank has been in the market since 1991. In 2007 it became an open joint stock company. Its main shareholders are Flesh, a limited liability company with a share of 74.18%, and the European Bank for Reconstruction and Development with 25.0000629%. Araratbank is a universal bank with a wide range of private and corporate services and an extensive branch network. As at 1 January 2012, the bank’s assets totalled about $230m, loan portfolio over $100m, and equity about $31m.