Yerevan /Mediamax/. European Bank for Reconstruction and Development (EBRD) and “Armswissbank” signed two loan agreements for the total sum of $8mln.

Mediamax reports that EBRD will allocate $5mln to the Armenian bank for financing of small and medium enterprises and $3mln for trade financing.

According to the General Director of “Armswissbank” Gevorg Mechanyan, cooperation with EBRD is of strategic importance for the bank and will serve realization of “Armswissbank” intentions to increase its credit portfolio by 45% in 2010.

Within the framework of the program on SME crediting, “Armswissbank” will be providing credits at the sum of up to $500 thousand for the term of up to 5 years and the interest rate of 14-16%. The credits will be available for enterprises with the number of employees making up to 250 people. Preference will be given to enterprises, the activity of which is directed to stimulating export and import substitution.

Within the framework of the program for trade financing, the bank intends to issue letters of credit, credit guarantees, realize factoring deals and provide other tools of trade financing.

Head of EBRD Yerevan office Valeri Razlog stated that the credit agreements, signed with “Armswissbank”, fully meet EBRD strategy concerning Armenia, more exactly – strengthening of the Armenian banking sector and rendering assistance to the real sector of Armenian economy.