Armenia, Yerevan (May 7, 2018). The Asian Development Bank (ADB) and "Ameriabank" CJSC have signed an agreement for the acquisition of 30 million US dollars of equity participation in order to strengthen the banking system of Armenia and expand access to financial services in the country. This is ADB's first equity acquisition transaction in Armenia. ADB also approved a loan of up to USD 30 million to Ameriabank.
The contract was signed by ADB Armenia Office Director Shane Rosenthal and Ameriabank Board of Directors Chairman Andrey Mkrtchyan during the contract signing ceremony held in Yerevan.
"We are happy to invest in Ameriabank. "Cooperating with the dynamic team of Ameriabank, we will support the expansion of credit volumes for small and medium enterprises, thus contributing to the growth and development of Armenia," said Mr. Rosenthal.
Ameriabank's role in the development of Armenia's economy and banking system, stable indicators of the effectiveness of the bank's activities over the last ten years, as well as the bank's active efforts to raise the standard of living of the society were the impetus for the said significant transaction. Ameriabank leads the list of leaders of the RA banking system by all main financial indicators. The bank is also the largest lender in Armenia. As of the first quarter of 2018, the bank's assets amounted to 1.4 billion USD.
"We highly appreciate this new level of partnership relations, which testify to ADB's deep trust in Ameriabank. This initiative will provide an additional incentive for the implementation of the bank's strategic goals and long-term plans, and will also greatly contribute to the expansion of access to international capital markets in the near future. I am sure that our joint efforts will allow to develop the banking system of Armenia and contribute to the economic growth of the country in general and the development of the SME sector in particular," said Andrey Mkrtchyan, Chairman of the Board of Directors of Ameriabank.
Access to finance in Armenia is a serious problem, especially for SMEs and micro-enterprises, despite their significant role in the Armenian economy. SMEs make up the majority of the country's enterprises, while their share in GDP and employment indicators is small (43% and 41.7%, respectively).
Strengthening the banking system of Armenia will allow providing affordable financing for SMEs and developing private financial services, expanding Ameriabank's financial capabilities to serve SMEs. In particular, the mentioned program will allow Ameriabank to provide sustainable financing to SMEs, thus contributing to the creation of new jobs by the latter and the growth and diversification of the RA economy.
As part of the financing package, ADB also plans to provide Ameriabank with a technical assistance grant to support digital banking technologies, IT systems and risk management.
The Asian Development Bank, headquartered in Manila, aims to reduce poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. ADB was founded in 1966 and has 67 members, 48 of which are from the Asian region.
You can visit www.adb.org for more information