YEREVAN. - Acquisition of ProCredit Bank will help Inecobank to extend financial services to small and medium enterprises (SME), Mr Jan van Bilsen, Regional Manager for the South Caucasus of the International Finance Corporation (IFC), said Thursday in Yerevan at the press conference, which announced the deal.
Inecobank has announced buying 100% of the shares of ProCredit Bank (Armenian subsidiary of German ProCredit Holding AG). To complete the deal, the bank attracted funds from the IFC, which extended a loan of $20 mln, and the European bank of Reconstruction and Development (EBRD), which made an equity investment of 9,8 bln AMD (around $20,2 mln at present rate), becoming a stockholder of 22,7%.
SMEs are the engine of employment and economic activity: in 2014, they accounted for 42 of every 100 jobs, generating 43% of GDP in Armenia.
“We believe that the successful consolidation of these 2 financial institutions will increase confidence in the banking sector and will help extend financial services to SMEs”, Mr Jan van Bilsen said.
The IFC has been partnering with Inecobank since 2006 in many areas, holding a stock of 9,32% in the bank and helping it attract foreign trade finance, he added.
