France's EFSE to provide $10 mln loan to ACBA Credit Agricole Bank

PanARMENIAN.Net - ACBA Credit Agricole Bank and the European Fund for Southeast Europe (EFSE) have signed a loan agreement in Armenia's national currency for the equivalent of $10 million, the bank's press service said. The loan will be used to finance agriculture and SMEs, ARKA reports.

Cooperation between the Bank and EFSE began in 2013, when EFSE provided the Yerevan-based institution with two loans to assist in financing micro and small business in Armenia.

ACBA Credit Agricole Bank Chief Executive Officer Hakob Andreasyan said that the loan will help the bank strengthen its position in the financial and banking system of Armenia.

"We are delighted to deepen our cooperation with the European Fund for Southeast Europe and to obtain a new loan in the national currency. This deal will allow ACBA Credit Agricole Bank to step up lending to agricultural sector and SMEs, which are the cornerstone of our economic development," he said.

EFSE Board Chairman Christoph Tiskens noted that effective cooperation between the two organizations, launched in 2013, has once again been confirmed by the third loan agreement.

ACBA was established in 1996 as part of EU’s TACIS program. As a result of a long-term and mutually beneficial cooperation between ACBA Bank and the French Credit Agricole, the latter became the biggest shareholder of ACBA in 2006, September. ACBA was restructured to become a closed joint stock company and was renamed ACBA Credit Agricole Bank.