Armswissbank and the European Bank for Reconstruction and Development (EBRD) signed Wednesday $ 8 million worth credit agreements aimed at crediting small and medium business ($ 5 million) and funding the trade sector ($ 3 million).
As noted by Armswissbank Executive Director Gevorg Machanyan, the SME crediting agreement will enable the bank to increase credit volumes in the sphere. The maximum loan amount will make $ 500, with the interest rate comprising 14%-16%. Companies having no more than 250 employees are eligible for loan programs.
Loans will be allocated to the enterprises whose activities are aimed at increasing production effectiveness, creating new productions and broadening the existing ones etc., the banker said.
“Within program frameworks, the bank will offer favorable conditions to those companies which direct their activities at boosting export and replacing the form of imported products,” he noted.
“The agreement signing period coincides with the bank’s policy of offering corporate banking services. In that connection, the bank will propose discussions with EBRD for further cooperation and implementation of additional programs,” Gevorg Machanyan said.
For his part, Head of EBRD Yerevan Office Valeriu Razlog said it was the first joint project with Armswissbank.
“Our strategy is aimed at strengthening Armenia’s banking and real economy sectors,” he noted.
“Despite the financial crisis, our banks managed to increase their credit portfolio in 2009. I hope the project will soon become accessible to entrepreneurs, increasing the clients’ number,” said Vache Gabrielyan, Vice-Chairman of Armenia’s Central Bank.
Armswissbank CJSC was founded on October 7, 2004 by founder Vartan Sirmakes, who is also the co-owner and executive director of “Franck Muller Watchland”.
In 2007, RA Central Bank issued licenses for brokerage and deposit activities.
The bank implements its activities in 3 spheres: corporate, investment and private banking.
