ArmInfo. The Development Bank of the Netherlands (FMO) and ARARATBANK signed a loan agreement for $ 20 million. The press service of the Bank reports that the funds will be used to lend to SMEs, women entrepreneurs and to finance business programs for young businessmen under the age of 35, in parallel with their retail lending.
"I am very pleased to sign another contract with FMO. I am confident that these funds will benefit the Armenian economy by including a new component in the program - the financing of youth, "said the Chairman of the Board of ARARATBANK Ashot Osipyan.
FMO Director for Investment Linda Broekhuizen noted that successful cooperation with ARARATBANK contributed to the continued development of the Armenian economy. "This new loan program will help increase the financial services available to the economic entities of Armenia, as well as women entrepreneurs and young businessmen," she said.
According to ARARATBANK, credit investments by April 1, 2018 reached 117.5 billion AMD, over 45% accounted for SME lending. The Bank's assets as of this date amounted to 211.2 billion drams, and total liabilities - 175.2 billion drams. The total capital of ARARATBANK by April 1, 2018 exceeded 36 billion drams. The first quarter of 2018, the Bank completed with a net profit of 903.1 million drams, with an annual growth rate of 4.7 times, including a quarterly increase of 2.8 times.
"ARARATBANK" has been operating since November 2005. The majority shareholders of ARARATBANK on January 1, 2018, one of the largest oil traders in Armenia - Flush company with a 72.73% stake in the capital, Barsegh Beglaryan (famous entrepreneur, the head of Flash) - 18.33%, Rural Impulse Fund II (part of the Belgian Incofin Investment Management - Incofin IM) - 8.58%.
FMO is one of the largest banks in the world stimulating the development of the private sector. The Bank focuses on three main areas that contribute to economic growth - financial institutions, energy and agribusiness, food and water economies. The FMO portfolio, distributed in more than 90 countries, is estimated at 9.2 billion euros. Under the credit programs FMO in Armenia, along with ARARATBANK, also works with INECOBANK and Ameriabank.