Armenian SMEs get promising offer

Armenia’s small and medium-sized enterprises have received an improved outlook after the country’s Inecobank and the IFC signed an agreement to increase access to trade finance.

Under the agreement, the IFC will guarantee individual trade transactions financed by Inecobank, allowing the Armenian institution to offer better trade finance solutions and to increase its operations.

The agreement is part of the IFC’s global trade finance programme, which has seen banks from Belize, Jordan and Moldova join in the past six months.

Avetis Baloyan, chief executive officer of Inecobank, says: “IFC’s global trade finance programme will help us to further develop our trade finance activities, offering our clients more competitive terms and expanding our international contacts through the programme’s global network of participating partner banks.”

Lars Thunell, executive vice-president and chief executive officer of the IFC, adds: “Trade is a cornerstone of economic development. As long-term partners and shareholders, we are very pleased to make support for trade finance yet another stage in our cooperation with Inecobank. Both the bank and its clients, including small and medium-sized companies, will benefit.”

Since 2006, the IFC has provided a number of financing facilities to Inecobank, including helping the Armenian bank to increase its microfinance capacity through a performance-based grants programme which will enable over 71,000 micro-loans to small entrepreneurs.