Yerevan /Mediamax/. International Finance Corporation (IFC) provided “Armeconombank” with a loan at the volume of $5mln to fund foreign trade.

Mediamax reports that “Armeconombank” Chairman of the Board David Sukiasyan said this in Yerevan today, speaking at the joint conference with the Head of IFC Yerevan Office Nerses Karamanukyan, the representatives of European Bank for Reconstruction and Development (EBRD) in Armenia Michael Weinstein and the Deputy Chairman of the Central Bank (CB) of Armenia Vache Gabrielyan.

David Sukiasyan noted that the credit provides not only for issue of bills of credit, but also for provision of cash credits to fund export and import deals of Armenian companies.

David Sukiasyan also informed on 1-year prolongation of the term for “Armeconombank” to repay the first tranche of syndicated loan at the volume of $15mln, presented to the bank according to the agreement, signed with EBRD on December 14, 2007. “The agreement provided that starting January 20, 2009, “Armeconombank” was to repay the first tranche at the volume of $5mln, however, taking into account the successful process of program realization, by mutual consent of “Armeconombank” and EBRD, the repayment term of the tranche is prolonged till January 18, 2010”, David Sukiasyan stated.

Besides EBRD, the participants of the syndicate are the German Commerzbank AG, Bank Austria Creditanstalt AG, Raiffeisen Zentralbank Osterreich AG, State Bank of India, Land Bank of Taiwan and FBN Bank (UK) Limited. According to EBRD representative in Armenia Michael Weinstein, the consent of the above-mentioned banks to prolong the terms of the loan repayment evidences their trust towards “Armeconombank” as a reliable partner.

Michael Weinstein noted that, appreciating the activity of the bank in the sphere of stimulating international trade, EBRD recognized “Armeconombank” to be the most active issuer bank in Armenia in 2008.

Head of IFC Yerevan Office Nerses Karamanukyan stated that the Corporation will continue assisting “Armeconombank”, as well as noted the readiness of IFC to acquire share participation in the bank in case the latter makes a decision on additional issue.

Deputy Chairman of the Armenian CB Vache Gabrielyan stressed the activity of “Armeconombank” in cooperating with international structures, also noting the professionalism of the bank in the sphere of small and medium enterprise crediting.

Net profit of “Armeconombank” reduced threefold in 2008

Net profit of “Armeconombank” made 460mln AMD in 2008, having reduced for 1.34bln AMD, as compared to 2007, the bank’s Chairman of the Board David Sukiasyan stated in Yerevan today.

Mediamax reports that he accounted for the reduction of profit by the growth of expenses in connection with the fact that the attracted means became more expensive, as well as by the increase of the bank’s liquidity level from 80 to 100%, “since in the view of the global financial crisis, delays with arrival of means, attracted from outside, may take place”.

“The bank manages its liquidity well and does not have problem credits”, David Sukiasyan stated.

According to him, starting from the first quarter of 2008, when the assets of the bank reduced for 20-25%, the bank has been demonstrating 30-35% growth on main indices.

“Deposits of individuals, having reduced in the first quarter of 2008, increased for 50% following the results of the entire year”, David Sukiasyan stated.