With the assistance of performance-based grants from the International Finance Corporation (IFC), Inecobank will expand its microfinance services in Armenia’s rural sector.
IFC will release up to USD 700,000 of performance-based grants to Inecobank. According to Microfinance Information Exchange, Inc. (MIX), Inecobank has total assets equivalent to USD 147.5 million, a return on assets of 4.29 percent and debt to equity ratio of 3.90. Through this transaction, IFC is launching a new form of support, performance-based grants structured in tranches, whereby microfinance institutions are rewarded for achieving development targets. Specifics of the development targets required to receive different levels of funding have not been made public. These funds are expected to generate over 71,000 new microloans to individuals and small businesses in the rural areas of Armenia. Inecobank’s Chief Executive Officer Avetis Baloyan recently stated, “With the onset of the financial crisis, microfinance proved to be one of the most sustainable products for the bank and one of its strategic sector priorities.”
About International Finance Corporation (IFC):
The International Finance Corporation (IFC), a member of the World Bank Group, supports private sector development, mobilizes private capital, and provides advisory and risk mitigation services to businesses. IFC website: http://www.ifc.org
About Inecobank:
Inecobank, a microfinance bank based in Armenia, was registered in 1996 with the Central Bank of Armenia. Inecobank provides comprehensive banking services in order to foster growth of microenterprises and small and medium-size enterprises. IFC is a shareholder of Inecobank, holding 10 percent of its shares. Inecobank website: http://www.inecobank.am/
Bibliography:
IFC: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Inecobank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inecobank
Additional Resources:
[1] Original article: http://www.ifc.org/ifcext/eca.nsf/Content/SelectedPR?OpenDocument&UNID=7956BC05D467AAC3852576B60054FD0E
[2] Mix market data on Inecobank: http://www.mixmarket.org/mfi/ineco
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