Armenian microfinance bank Inecobank is set to receive a loan of USD 10 million through a joint agreement with German development finance institution Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG) and Austrian development bank Oesterreichische Entwicklungsbank AG (OeEB) in an effort to promote the development of small and medium-sized enterprises (SME) in Armenia.
“SME are often too small for commercial banks and too big for micro-finance institutions. This financing gap needs to be closed,” said Holger Rothenbusch, Head of DEG’s Asia / Europe Division. Inecobank CEO Avetis Baloyan said, “Small and medium sized enterprises are the key and dynamic players of the private sector and this joint loan will be used for financing the SME businesses and helping them to expand their business.”
Inecobank provides a range of banking services with the aim of fostering the growth of micro-, small and medium-sized enterprises. As of March 2011, Inecobank reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 112 million, a return on assets of 2.97 percent and a return on equity of 13.76 percent.
By Kristha Abores, Research Associate
About Inecobank:
Inecobank, a microfinance bank based in Armenia that was registered in 1996, provides loan and savings products with the aim of fostering the growth of micro-, small and medium-sized enterprises. The International Finance Corporation (IFC) holds a 10-percent stake in Inecobank. Inecobank reported total assets of USD 190 million as of July 2011. As of March 2011, Inecobank reported to US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 112 million, a return on assets of 2.97 percent and a return on equity of 13.76 percent.
About Deutsche Investitions-und Entwicklungsgesellschaft GmbH:
Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG), a member of KfW Bankengruppe, is a German development finance institution offering long-term project and company financing. DEG provides assistance to all sectors, with particular attention to agribusiness, financial institutions and infrastructure and processing industries. As of December 2010, DEG reported total assets of EUR 3.88 billion (approximately USD 5.16 billion) and net profit of EUR 270 million (USD 359 million).
About Oesterreichische Entwicklungsbank AG (OeEB):
Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the official development bank of Austria since March 2008. OeEB provides long-term financing for the implementation of private sector projects in developing countries in an effort to promote sustainable development. OeEB also provides technical assistance in an effort to enhance the development impact of projects. As of December 31, 2010, OeEB reported total assets of EUR 147 million (USD 196 million), EUR 94.3 million (USD 125 million) invested in seven projects that resulted in the creation of an estimated 7,320 jobs.
Sources and Additional Resources:
[1] Inecobank Press Release: ” Inecobank signs a joint agreement with DEG and OeEB attracting 10 million USD for SME development”
MicroCapital.org article, February 2, 2010, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Works With Inecobank To Expand Microfinance Access in Armenia”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-works-with-inecobank-to-expand-microfinance-access-in-armenia/
MicroCapital.org article, November 1, 2010, “MICROCAPITAL BRIEF: Microfinance Investment Manager BlueOrchard Finance Invests $7m in Inecobank of Armenia, Credo of Georgia and Pag-Asa”, https://www.microcapital.org/microcapital-brief-microfinance-investment-manager-blueorchard-finance-invests-7m-in-inecobank-of-armenia-credo-of-georgia-and-asa-philippines-foundation/
MicroCapital Universe Profile: Inecobank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inecobank
MicroCapital Universe Profile: Deutsche Investitions und Entwicklungesellschaft MBH, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Deutsche+Investitions-und+Entwicklungsgesellschaft+GmbH+%28DEG%29
MicroCapital Universe Profile: Oesterreichische Entwicklungsbank AG (OeEB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oesterreichische+Entwicklungsbank+AG+%28OeEB%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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