MICROCAPITAL BRIEF: International Finance Corporation (IFC) Lends $30m to Agricultural Cooperative Bank of Armenia (ACBA)-Credit Agricole Bank to Support Micro-, Small and Medium-Sized Enterprises (MSMEs), Agribusinesses

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has made a loan of USD 30 million to Agricultural Cooperative Bank of Armenia (ACBA)-Credit Agricole Bank to increase lending to micro-, small and medium-sized enterprises (MSMEs) and agribusinesses in Armenia. In 2011, IFC made a loan of USD 20 million to the organization, supporting approximately 3,000 clients.

ACBA-Credit Agricole Bank CEO Stepan Gishyan was quoted as having said, “The new loan will further increase our capacity for lending to micro and small and medium enterprises, including agribusiness.… This is a new stage in our successful cooperation with IFC. With this new loan IFC significantly emphasizes its role as one of our largest lenders. During these challenging economic times, lending to micro and small businesses is very important for both of our institutions.”

As of 2010, ACBA reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 462 million, a gross loan portfolio of USD 261 million, return on assets of 2.34 percent and return on equity of 10.8 percent.

By Kristha Abores, Research Associate

About International Finance Corporation:

A member of the 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 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

About ACBA Credit Agricole Bank:

Agricultural Cooperative Bank of Armenia (ACBA) was founded by the Agricultural Cooperative Regional Unions of the three Armenian provinces of Shirak, Armavir and Ararat and obtained a full banking license on March 29, 1996. ACBA was initially created to finance small and medium-sized agricultural enterprises and individual farmers. In the next few years the bank began to finance non-agricultural programs in the agricultural sector. Since 1999, ACBA has extended loans for small and medium-sized business development. In 2006, Credit Agricole SA France, made an investment in ACBA and the bank was reorganized into ACBA-Credit Agricole Bank CJSC. As of 2010, ACBA reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 462 million, a gross loan portfolio of USD 261 million, return on assets of 2.34 percent and return on equity of 10.8 percent.

Sources and Additional Resources:

[1] “Armenia: IFC Loan Helps Armenia’s ACBA-Credit Agricole Boost Lending to Small Businesses, Farmers,” http://www.syminvest.com/news/armenia-ifc-loan-helps-armenias-acbacredit…

MicroCapital.org article, March 31, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $20m to Agricultural Cooperative Bank of Armenia (ACBA)-Credit Agricole Bank to Increase Lending to Micro-, Small and Medium-Sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-international-finance-cor…

MicroCapital Universe Profile: ACBA Credit Agricole Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACB…

MicroCapital Universe Profile: International Finance Corporation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int…

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