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VTB Bank Armenia - SME financing

Armenia | Financial Institutions

Identification Code:: OP/12/0032
Total Operation Cost:: 9.000.000 USD
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

9.000.000 USD – 23 Jun 2012
: BSTDB Signed Amount – Signed Date

N/A – N/A
: Status:
Cancelled
Description and Purpose of the Operation:: Bank to Bank Loan to VTB Bank (Armenia) for SME Financing purposes
Countries of Operation:: Armenia (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: The USD 9 million loan to VTB Bank Armenia for SME financing purposes shall be used by the Borrower exclusively for the purpose of providing loans to SMEs eligible in accordance with the eligibility criteria agreed with the Bank. The loan aims to contribute towards expanding of the SME lending program of one of the leading Armenian banks and thus facilitate the access to finance for small and medium sized private businesses and entrepreneurs.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The Project is expected to have favorable economic benefits for the Armenian economy, the most relevant being additional tax revenue gains from increased economic activity. The loan amount will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. Other BSTDB countries are important trade partners for Armenia so to the extent SMEs benefiting from financing from the operation engage in export activities, there will be regional cooperation benefits.
Environmental Classification and Impact:: The Borrower is expected to adopt and implement basic EHS procedures satisfactory to BSTDB and to integrate these as fully as possible into its credit / investment appraisal and monitoring process; no proceeds will be used to finance any activities contained in the BSTDB Negative List of Products; will require sub-projects to comply, at a minimum, with the environmental regulations and standards of the Republic of Armenia; and will submit to the Bank annual EHS performance reports.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org