June 19, 2014 - 14:10 AMT
PanARMENIAN.Net - The European Fund for Southeast Europe (EFSE) expanded its partnership with Araratbank OJSC by issuing an additional USD 12 million senior loan to fund sub-loans destined for micro and small enterprises (MSEs) in Armenia.
Araratbank is a long-standing partner lending institution of the EFSE that has always shown a strong commitment to serving the Fund’s target group of MSE owners, and thus to supporting the economic activity in the country. This additional long-term financing provided by EFSE will enable Araratbank to offer loans with longer maturity and address the working capital and investment needs of MSEs in a sustainable way.
“Since our cooperation began four years ago, Araratbank has consistently proved a trustworthy and successful partner for the EFSE,” said Monika Beck, Chairperson of the Board of the EFSE. “Supporting Araratbank’s ability to provide long-term financing is essential to foster responsible banking practices, and therefore to fulfil the EFSE’s mission of facilitating sustainable financing for micro and small enterprises.”
“This latest senior loan is the fourth credit facility Araratbank OJSC has obtained from the EFSE, and this fact alone is the best evidence for the strength and stability of the relationship between our two institutions. Within the framework of the previous agreements, we provided loans for 967 projects related to micro and small enterprise activities. The EFSE’s funding enabled us to offer our clients financing under long-term, affordable and competitive terms and to diversify our loan portfolio,” stated Ashot Osipyan, CEO of Araratbank OJSC, touching upon the new loan agreement signed for the purposes of stimulating micro and small enterprises in Armenia.
He also saluted the effectiveness with which the EFSE Development Facility provided technical assistance in improving the Bank’s risk management structures, branch network management and internal audit systems.
The senior loan will specifically serve to finance sub-loans with an interest rate in the 10-11% range and a 5-year maturity.