June 20, 2014 - 13:20 AMT
PanARMENIAN.Net - The European Fund for Southeast Europe (EFSE) signed its first senior synthetic loan agreement denominated in Armenian drams with ACBA-Credit Agricole Bank (ACBA Bank) in the equivalent of USD 15 million. This loan will further strengthen ACBA Bank’s position as one of the leading banks in Armenia, enabling it to finance over 10,000 loans to micro and small-sized businesses, including local agricultural producers and individual farmers.
ACBA Bank and EFSE began their partnership in 2013, when the Bank benefited from two EFSE loans to support the financing needs of micro and small-sized enterprises in Armenia. “With its strong focus on and presence in the rural areas of Armenia, ACBA Bank is an excellent fit for the EFSE in reaching out to its target group throughout the country,” said Monika Beck, Chairperson of the Board of the EFSE. “We are pleased to provide ACBA Bank with long-term funding in Armenian drams to address the unmet demand of local farmers and entrepreneurs, particularly in rural Armenia, in a responsible and sustainable way.”
Hakob Andreasyan, CEO of ACBA-Credit Agricole Bank, added: “We are happy to deepen our cooperation with the EFSE and we are pleased to receive the synthetic loan in Armenian drams from the dedicated international fund. This transaction will timely increase our local currency resources for on-lending to SME sector borrowers, both in urban and rural areas, which is vital for the economic development of Armenia.”