FMO to provide $ 20 million loan for SME financing to ARARATBANK  

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.