The European Bank for Reconstruction and Development (EBRD), a multilateral institution based in London, England, is providing a local-currency loan equivalent to USD 5 million (approximately AMD 2 billion) to Converse Bank CJSC, a closed joint stock company in Armenia. The goal of the transaction is to support the development of the country’s private sector by limiting currency exchange risks for borrowers, especially micro-, small and medium-sized enterprises (MSMEs). According to Valeriu Razlog, head of EBRD’s resident office in Yerevan, “The local business will greatly benefit from this facility in the current economic environment where there is a limited source of local currency long-term financing. This transaction reinforces the EBRD’s commitment to support the development of private businesses in Armenia as well as to further strengthen the financial sector in the country.” The length of the term of the loan was undisclosed.
EBRD aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion). As of December 2012, Converse Bank reported total assets of AMD 117 billion (USD 289 million). As of 2011, Converse Bank reported a loan portfolio of AMD 46.2 billion (USD 114 million) and their number of customers totaling 56,244.
By Lena Phillips, Research Associate
About Converse Bank CJSC
Converse Bank CJSC (Closed Joint Stock Company) is a private bank in Armenia that was established in 1993. As of December 2012, Converse Bank reported total assets of AMD 117 billion (USD 289 million) as well as 33 branches and 684 employees. As of 2011, Converse Bank reported a loan portfolio of AMD 46.2 billion (USD 114 million) and their number of customers totaling 56,244.
About The European Bank for Reconstruction and Development (EBRD)
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
Sources and Additional Resources:
European Bank for Reconstruction and Development (EBRD) Press Release: http://www.ebrd.com/pages/news/press/2013/130131a.shtml
MicroCapital.org Article, 30 January 2013: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $1.35 million to LandesLease of Albania to Support Small and Medium-sized Enterprises (SMEs),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-1-35m-to-landeslease-of-albania-to-support-small-and-medium-sized-enteprises-smes/#more-22310
MicroCapital.org Article, 18 January 2013: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $6m in Local Currency to IMON International of Tajikistan,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-6m-in-local-currency-to-imon-international-of-tajikistan/#more-22046
MicroCapital.org Article, 14 August 2010: “MICROCAPITAL BRIEF: Armenian CJSC Converse Bank Receives Loan of $10m from Microfinance Investment Vehicle (MIV) European Fund for Southeast Europe,” https://www.microcapital.org/microcapital-brief-armenian-cjsc-converse-bank-receives-loan-of-10m-from-microfinance-investment-vehicle-miv-european-fund-for-southeast-europe/#more-6448
MicroCapital Universe Profile: Converse Bank CJSE, http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Converse+Bank+CJSC
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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