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Armeconombank SME loan I

Armenia | Financial Institutions

Identification Code:: OP/06/0563
Total Operation Cost:: — USD
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

5.000.000 USD – 01 Dec 2007
: BSTDB Signed Amount – Signed Date

5.000.000 USD – 12 Feb 2008
: Status:
Completed
Description and Purpose of the Operation:: BSTDB extends a SME loan facility to be used by Armeconombank for providing sub-loans to small and medium-sized enterprises with the following purposes: creation, modernisation, expansion and diversification of industrial, production, agricultural or service- related facilities, as well as for export and pre-export financing of industrial or agricultural enterprises.
Countries of Operation:: Armenia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Armeconombank OJSC is one of top-10 banks in Armenia by total assets. It is a universal bank offering comprehensive package of bank services. Armeconombank has a wide branch network, consisting of 35 branches. The bank actively cooperates with international financial institutions such as World Bank, EBRD, IFC and KfW. In year 2005, the EBRD acquired blocking minority stake in the bank (25% +1 share). Along with all products and services, the bank continues to specialize in lending to small and medium-sized enterprises.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: In cooperation with ARMECOBANK, BSTDB extends medium term funding to numerous small and medium-sized enterprises in Armenia, as well as demonstrates viability of providing longer term funding to Armenia's developing small and medium enterprise sector. In the interest of facilitating economic development in member countries, BSTDB wants to support local financial intermediaries and help this important sector of the economy grow.
Environmental Classification and Impact:: The Borrower has adopted and implemented the basic environmental procedures satisfactory to BSTDB and has integrated them as fully as possible into its credit/investment appraisal and monitoring process. The Borrower is required to undertake environmental assessment of the sub-loans with medium and high environmental risk, as well as ensure proper monitoring of these operations; ensure compliance of the sub- loans with applicable national EH&S requirements; continue to adhere to the Bank’s Environmental Exclusion List and Negative List of Goods; and submit annual EH&S performance reports.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org