IFC loans $30mln to ACBA-Credit Agricole Bank to support SMEs

 January 20, 2012 - 13:52 AMT

PanARMENIAN.Net - IFC, a member of the World Bank Group, is providing Armenia’s ACBA-Credit Agricole Bank with a $30 million loan to expand lending to local micro, small, and medium enterprises and agribusinesses, boosting job creation.

Amid tighter credit and volatility in international financial markets, IFC’s medium-term funding will support the bank’s lending program in rural areas through its extensive network of branches throughout Armenia. This is the second loan IFC has provided to ACBA-Credit Agricole Bank since March 2011. IFC previously provided the bank with a $20 million loan, which has already been fully utilized to support about 3,000 local clients.

“The new loan will further increase our capacity for lending to micro and small and medium enterprises, including agribusiness,” said Stepan Gishyan, CEO of ACBA-Credit Agricole Bank. “This is a new stage in our successful cooperation with IFC. With this new loan IFC significantly emphasizes its role as one of our largest lenders. During these challenging economic, times lending to micro and small businesses is very important for both of our institutions.”

Thomas Lubeck, IFC Regional Head for the Caucasus, said: “IFC continues to play an important role in supporting banks in emerging markets to help expand their lending programs in priority sectors, like agribusiness. With this second loan to the leading lender to the agriculture sector in Armenia in a short time span, we aim to support development of micro and small businesses, the sector that employs a significant part of Armenian workers.”