Eurasian Bank of Development lends USD20 m to finance businesses in Armenia

27.04.10, 19:04
/KASE, April 27, 10/ - Eurasian Bank of Development, bond of which are listing on Kazakhstan Stock Exchange (KASE), provided KASE with a press release dated April 27, 2010: Quotation begins Today Eurasian Bank of Development and ZAO Armbiznesbank (Armenia) signed an Agreement on a five-year USD20 m credit line to finance businesses in Armenia. The Agreement was signed by acting managing director of the bank Genadiy Zhuzhlev and Armbiznesbank chairman Ara Kirakosyan. The project is aimed to support small and middle scale businesses by providing credit lines to commercial banks of member states. This is the first such project in Armenia. The project targets: - creation of favorable conditions for development of small and middle businesses in Armenia; - enhancement of competitiveness of companies on domestic and foreign markets for purposes of facilitation of integration processes in member states; - development of infrastructure and institutional basis of the economy; - financial support of small and middle businesses; - creation, enlargement, modernization and diversification of production base of small and middle companies; - growth of mutual trade of member states; - job creation; - increase of tax receipts to budgets of member states; - supply of market of member states with quality goods and services. Small and middle businesses are strategically important for Armenia and provide a basis of economical and political stability, constituting for a traditional 40 % share in GDP. Taking into account the fact Armenia is experiencing difficulties with long-term financing required for capital investments, the credit line should help Armenian small and middle businesses to solve such problems. Besides, the bank deems the credit line will support growth of investment attractiveness of Armbiznesbank, which in future will allow for the Armenian side to attract other investors and receive international credit ratings. Ends [2010-04-27]