The International Finance Corporation (IFC), the private sector arm of the World Bank Group, recently announced that it will provide Inecobank, an Armenian microfinance bank founded in 1996 with total assets of USD 129 million, support expanding access to trade finance for small and medium-sized enterprises in Armenia. The agreement will allow the Inecobank to provide enhanced trade finance solutions for import and export clients and increase its trade finance operations. Under the agreement IFC will guarantee individual trade transactions financed by Inecobank.
While financial details of the recent agreement have not been released, for the fiscal year that ended June 30, 2010, IFCs commitments in Armenia amounted to USD 35.3 million.
About The International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that ‘collectively determine its policies, and approve investments.’ In fiscal year 2009, its new investments totaled USD 14.5 billion.
About Inecobank:
Inecobank, a microfinance bank based in Armenia, was registered in 1996 with the Central Bank of Armenia. Inecobank provides comprehensive banking services with the aim of fostering the growth of small and medium-sized enterprises. The International Finance Corporation (IFC) holds 10 percent of Inecobank’s shares. Inecobank reports total assets of USD 129 million, a gross loan portfolio of 72.5 million, a return on assets of 2.15 percent and a return on equity of 10.16 percent as of December 2009.
By Matthew Fox, Research Assistant
Sources and Additional Resources:
International Finance Corporation (IFC): Press Release, 26 August 2010: http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/08D1B4E7182642668525778B005502B2?OpenDocument
MicroCapital Universe: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)
MicroCapital Universe: Inecobank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inecobank
MicroCapital Universe: Pacific Microfinance Initiative: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Pacific+Microfinance+Initiative
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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