Inecobank, an Armenian microfinance bank, has increased its lending to micro- and small businesses in rural Armenia in concert with a set of performance-based grants from the International Finance Corporation (IFC), a member of the US-based World Bank Group. The funding was awarded as part of IFC’s “Performance Based Grant Initiative for Access to Finance,” which intends to offer “incentives to financial institutions that demonstrate strong commitment to penetrating new market segments, and to developing initiatives to reach underserved segments of the population.” Inecobank me the requirement to receive all of the USD 700,000 in grants available under the IFC program. The Grant disbursements were contingent on meeting undisclosed, pre-determined performance targets and were intended to catalyze 71,000 microloans to individuals and small businesses.
For the year 2012, Inecobank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 220 million, a gross loan portfolio of USD 167 million, total deposits of USD 63.8 million, a return on assets (ROA) of 4.16 percent and a return on equity (ROE) of 23.4 percent. Since 2010, Inecobank has disbursed approximately 101,000 microloans, 84 percent of which have gone to borrowers in rural areas.
By Brian LeBlanc, Research Associate
About the International Finance Corporation (IFC)
About Inecobank
Founded in 1996, Inecobank is an Armenia-based closed joint stock company focusing on providing financial services to micro-, small and medium-sized enterprises (MSMEs). For the year 2012, Inecobank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 220 million, a gross loan portfolio of USD 167 million, total deposits of USD 63.8 million, a return on assets (ROA) of 4.16 percent and a return on equity (ROE) of 23.4 percent.
About the International Finance Corporation (IFC)
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2012, IFC reported total assets of USD 75.7 billion.
Sources and Additional Information:
Inecobank press release, “IFC Helps Armenia’s Inecobank Support Micro and Small Businesses Spurring their Growth”
IFC press release, “IFC’s Performance Based Grant Initiative for Access to Finance (PBGI-A2F)”
MicroCapital article, May 11, 2012, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Lends $23m to Inecobank of Armenia, Megabank of Ukraine, Partner MikroKreditna Fondacija Tuzla of Bosnia and Herzegovina,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-lends-23m-to-ineco-bank-of-armenia-megabank-of-ukraine-partner-mikrokreditna-fondacija-tuzla-of-bosnia-and-herzegovina/
MicroCapital article, November 1, 2010, “MICROCAPITAL BRIEF: Microfinance Insvestment 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 article, August 31, 2010, “MICROCAPITAL BRIEF: The International Finance Corporation (IFC) Provides Microfinance Bank Inecobank Support to Expand Access to Trade Finance in Armenia,” https://www.microcapital.org/microcapital-brief-the-international-finance-corporation-ifc-provides-microfinance-institution-mfi-inecobank-support-to-expand-access-to-trade-finance-in-armenia-2/
MicroCapital article, August 30, 2010, “MICROCAPITAL BRIEF: The International Finance Corporation (IFC) and the Australian Government Launch the Pacific Microfinance Initiative,” https://www.microcapital.org/microcapital-brief-the-international-finance-corporation-ifc-and-the-australian-government-launch-the-pacific-microfinance-initiative/
MicroCapital 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 Universe Profile: Inecobank
MicroCapital Universe Profile: International Finance Corporation (IFC)
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