EBRD lends to Armenian bank

The European Bank for Reconstruction and Development (EBRD) is providing a US$5mn loan to Cascade Bank, a private Armenian bank. The loan is intended to expand its lending activities in the SME sector, and the EBRD will also support the loan with an assistance programme sponsored by technical cooperation funds.

"The SME sector is so important, because it is there that jobs are being created, living standards are being raised and the middle class is emerging,” comments Michael Weinstein, head of the EBRD's Yerevan office in Armenia.

Aharon Levonyan, CEO of Cascade Bank adds: “Given the upward trend Armenian deposit rates, EBRD credit lines are an important alternative source of funding which will help Cascade Bank continue to offer lower lending rates to SME borrowers.”

The loan falls under the EBRD's Armenia multi-bank framework facility that provides funds to local banks for on-lending to commercial customers.